Answer:
Interest period (t) = 1 year
Compounding period (CP) = 1
The number of times interest is compounded in an interest period (m) = 4
Explanation:
Interest period (t) is the period for which the interest is mentioned.
The interest rate here is 6% per year, therefore interest period is 1 year.
Compounding period (CP) is the time frame for which the interest compounded or earned. The interest here is compounded quarterly, therefore the compounding period is 1 quarter.
The number of times interest is compounded in an interest period (m) is given by the number of compounding periods that are in the interest period. There are 4 quarters in a year, therefore the number of times interest is compounded in an interest period is 4 quarters in a year.
