Asked by Kendra Grady on May 07, 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
Interest calculated only on the principal amount of a loan or investment, rather than on previously earned interest.
Monthly Basis
pertaining to or calculated over the period of one month.
- Recalculate annual interest rates as rates on a monthly basis.
- Compute the simple interest monthly.
Verified Answer
BS
Learning Objectives
- Recalculate annual interest rates as rates on a monthly basis.
- Compute the simple interest monthly.