What Is the Interest Rate Charged Per Period Multiplied by the Number

question 103

Multiple Choice

What is the interest rate charged per period multiplied by the number of periods per year called?

• A)effective annual rate
• B)annual percentage rate
• C)periodic interest rate
• D)compound interest rate
• E)daily interest rate

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Definitions:

Exemption

A deduction allowed by law to reduce the amount of income that would otherwise be taxed. These are often provided for the taxpayer, their spouse, and dependents.

Full-Time Student

An individual enrolled in a higher education institution for the number of hours or courses the school considers to be full-time attendance.

Working as a Clerk

Employment involving performance of administrative duties, such as filing, keeping records, or assisting customers.

Qualifying Relative

A tax term that refers to a relative or even a non-relative who meets certain IRS criteria, allowing the taxpayer to claim them as a dependent for tax purposes.