Identify the compounding period for the following interest statements: ( a ) 3% per quarter; ( b ) 10% per year, compounded semiannually; ( c ) nominal 7.2% per year, compounded monthly; ( d ) effective 3.4% per quarter, compounded weekly; and ( e ) 2% per month, compounded continuously

A) 3% per quarter As the rate is expresses as quarterly there are no subperiods.

b) 10% per year, compounded semiannually 2 period per cycle

c) nominal 7.2% per year, compounded monthly;

12 period per cycle

d ) effective 3.4% per quarter, compounded weekly

12 periods as we assume 4 weeks per month an a quarter has 3 months

( e ) 2% per month, compounded continuously

infinite periods as continuously compounding represent an hypothetical full use of compound capitalziation over a given period of time

Explanation:

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.