Quarterly rate

The quarterly rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per quarter (four times per year).

Example

If the quoted quarterly rate is 6.00%,

the amount of interest compounded quarterly is:

= 6.00% / 4

= 1.50%.

Not to be confused with the related annual effective rate, which in this case is:

= 1.015⁴ - 1

= 6.14%.

See also

• Annual effective rate
• Nominal annual rate
• Periodic rate of interest