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

d=0.4%

Explanation:

Answer 2

(1+r)=(1+i/12)^12
1+0.048=(1+i/12)^12
Solve for I
I=((1.048)^(1÷12)−1)×12
I=0.047*100=4.7%