Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly.a Which of the following statements is CORRECT?Answer
a.The periodic rate of interest is 2% and the effective rate of interest is 4%.
b.The periodic rate of interest is 8% and the effective rate of interest is greater than 8%.
c.The periodic rate of interest is 4% and the effective rate of interest is less than 8%.
d.The periodic rate of interest is 2% and the effective rate of interest is greater than 8%.
e.The periodic rate of interest is 8% and the effective rate of interest is also 8%.