Question

Can I get sum help? 50 pointtssss:

Determine the monthly interest rate given the annual interest rate as 3%.(Show your working)

Answer 1

Annual = Yearly

There are 12 months so we need to divide 3 over 12.

Which equates to 0.0025 = 0.25%

Answer 2

Your monthly interest rate is 0.25%

Explanation:

1. Convert the annual rate from a percent to a decimal by dividing by 100: 3/100 = 0.03

2. Now divide that number by 12 to get the monthly interest rate in decimal form: 0.03/12 = 0.0025

2. To calculate the monthly interest on an amount of $, you'll multiply that number by the total amount: 0.0025 x whatever sum of money annually = $ per month

3. Convert the monthly rate in decimal format back to a percentage (by multiplying by 100): 0.0025 x 100 = 0.25%