At What Rate of Interest (Compounded Monthly) Will Quarterly Payments

question 207

Multiple Choice

At what rate of interest (compounded monthly) will quarterly payments of $2,000 accumulate to $25,000 in three years?

• A) 6.95%
• B) 5.95%
• C) 4.95%
• D) 3.95%
• E) 2.95%

---

Definitions:

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as the mean or variance.

Subscription Renewal

Subscription renewal is the process by which subscribers extend their access to a service or publication for an additional period, typically upon the expiry of the current subscription term.

Spyware Infections

Malicious software designed to infiltrate or damage a computer system without the user's informed consent, often used to steal personal information.

Technical Information

Detailed data or knowledge related specifically to a technical or specialized subject area.