Q
QuestionMathematics

"If interest is compounded quarterly, how many times a year is it compounded? A. Four B. One C. Twelve D. Two"
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Answer

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Step 1
I'll solve this problem step by step:

Step 2
: Understand the Term "Compounded Quarterly"

- The term "quarterly" means four times per year - Quarterly refers to dividing the year into four equal periods (quarters) - Each quarter represents 3 months of the year

Final Answer

Four The key point is that "quarterly" always means four times per year, regardless of the specific financial context.