Question 2 Find the monthly interest rate What is the monthl

Question 2

Find the monthly interest rate.

What is the monthly interest rate if an annual rate is 17.5%?

1.4%

1.46%

16.5%

14.58%

Solution

Annual Interest Rate = 17.5%

Monthly Interest Rate = Annual Interest/Number of Months in Year

=> Annual Interest Rate/12

=> 17.5%/12

=> 1.45833%

Hence the correct answer is Option B