Question

The annual interest rate of Mike's savings account is 4.8%, and simple interest is calculated monthly. What is the periodic interest rate of Mike's account?

a.0.6%
b.0.9%
c.1.8%
d.0.4%

Answer 1

The correct option will be: d. 0.4% Apex

Explanation:

Answer 2

The correct option will be: d. 0.4%

For finding the periodic interest rate , we need to divide the annual interest rate by the number of times interest calculated in a year.

Here, the simple interest is calculated monthly, that means the number of times interest calculated in a year will be 12.

Annual interest rate is 4.8%

So, the periodic interest rate =
`(4.8)/(12)= 0.4`%