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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%
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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%

User Pulkit Jha
by
7.5k points

2 Answers

7 votes
hey bud the answer is 0.6

User Anton Smith
by
8.0k points
5 votes
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.
User Milos Matic
by
7.7k points
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