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27 September, 21:34

The annual interest rate of Paul's savings account is 7.2%, and simple interest is calculated monthly. What is the periodic interest rate of Paul's account?

A. 0.9%

B. 0.6%

C. 0.4%

D. 1.8%

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Answers (2)
  1. 27 September, 23:24
    0
    B) 0.6%

    The periodic interest rate is found by dividing the annual interest rate by the number of times per year it is compounded.

    7.5/12 = 0.625, rounded to 0.6.
  2. 28 September, 00:41
    0
    Hey bud the answer is 0.6
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