If the Quarterly Rate of Interest Is 2

question 24

Multiple Choice

If the quarterly rate of interest is 2.5% and interest is compounded quarterly, then the APR is:

• A)10.38%
• B)10.00%
• C)2.50%
• D)none of the above

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Definitions:

Decrease

The act or process of becoming smaller in size, amount, number, or level.

Profitability

A measure of the efficiency and financial performance of a company, indicating the ability to generate income from operations.

Accounts Receivable Turnover

This is a financial ratio that measures how effectively a company collects debts from its credit customers, indicating the number of times average accounts receivable are collected during a period.

Sales In Receivables

Accounts receivable that result from sales transactions, indicating the amount of money customers owe a company.