Asked by Thompson Stockmann on May 22, 2024
Verified
Convert the annual rate to a monthly rate. Then, compute the simple interest on a monthly basis. Round answers to the nearest cent.
Simple Interest
Simple interest is a method of calculating the interest charge on a loan based on the original principal amount and the interest rate, without compounding over time.
Monthly Basis
A term referring to events or calculations repeated or measured every month.
Round Answers
The process of adjusting the decimal places of a number to simplify it, based on specific rounding rules.
- Reformulate yearly interest rates into rates that apply monthly.
- Ascertain simple interest on a per-month basis.
Verified Answer
TC
Learning Objectives
- Reformulate yearly interest rates into rates that apply monthly.
- Ascertain simple interest on a per-month basis.