**Question 691** continuously compounding rate, effective rate, continuously compounding rate conversion, no explanation

A bank quotes an interest rate of **6**% pa with quarterly compounding. Note that another way of stating this rate is that it is an annual percentage rate (APR) compounding discretely every 3 months.

Which of the following statements about this rate is **NOT** correct? All percentages are given to 6 decimal places. The equivalent: