Identify the compounding period for the following interest statements: (a) 3% per quarter; (b) 10% per year,

Question:

Identify the period for the following interest statements:
(a) 3% per quarter;
(b) 10% per year, compounded semiannually;
(c) Nominal 7.2% per year, compounded monthly;
(d) Effective 3.4% per quarter, compounded weekly; and
(e) 2% per month, compounded continuously.

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...