Question

fill in the blanks so that the resulting statement is true. if compound interest is paid four times per year, the compounding period is ____ months and the interest is compounded ____. if compound interest is paid four times per year, the compounding period is dropdown months and the interest is compounded dropdown. the dropdown for the first blank has options: twelve, six, four, three

Explanation:

Step1: Calculate compounding period in months

A year has 12 months. If compound interest is paid 4 times a year, we divide the total months in a year by the number of compounding periods per year. So, \( \frac{12}{4} = 3 \) months.

Step2: Determine compounding term

When interest is compounded 4 times a year, the term for this compounding frequency is "quarterly" (since a quarter of a year is 3 months, and 4 quarters make a year).

Answer:

3, quarterly