Question

The annual interest rate of Paul's savings account is 7.2%,and simple interest is calculated monthly. What is the periodic interest rate of Paul's account?

A. 0.9%
B. 0.6%
C. 0.4%
D. 1.8%

Answer 1

B) 0.6%

The periodic interest rate is found by dividing the annual interest rate by the number of times per year it is compounded.

7.5/12 = 0.625, rounded to 0.6.

Answer 2

hey bud the answer is 0.6