ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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4
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2
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1
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6
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Detailed explanation-1: -As its name suggests, there are four quarterly periods in a year, meaning a publicly-traded company would issue four quarterly reports per year.
Detailed explanation-2: -A quarterly event happens four times a year, at intervals of three months.
Detailed explanation-3: -The traditional calendar quarters that make up the year are: Dates for Q1: January 1 – March 31. Dates for Q2: April 1 – June 3. Dates for Q3: July 1 – September 30. Dates for Q4: October 1 – December 31.
Detailed explanation-4: -Answer and Explanation: There are 20 quarterly periods in 5 years. When a compound interest account has quarterly compounding periods, the interest is compounded four times each year; once at the end of each quarter. That is, quarterly periods in a year refer to the four quarters of a year.