Problem
An engineering firm can pay for its liability insurance on an annual or quarterly basis. If paid quarterly, the insurance costs $18,000. If paid annually, the insurance costs $65,000. What are the quarterly rate of return and the nominal and effective interest rates for paying on an annual basis?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.