Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
1. The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
2. The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
3. The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
4. The periodic rate of interest is 3% and the effective rate of interest is 6%.
5. The periodic rate of interest is 6% and the effective rate of interest is also 6%.