Asked by Anupama pandit on Apr 23, 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 calculation of interest that does not take into account the effect of compounding. Interest is applied only to the principal over a set period.
Monthly Basis
A timeframe or calculation done once every month or for each month.
Round Answers
A mathematical procedure of adjusting the figure to the nearest desired value or precision, often in calculations or data presentations.
- Adjust annual interest rates to their corresponding monthly rates.
- Determine monthly simple interest.
Verified Answer
ZK
Learning Objectives
- Adjust annual interest rates to their corresponding monthly rates.
- Determine monthly simple interest.