I would say gives the yearly amount of potential interest earnt. Now divide this by the initial amount to get the interest rate
I guess I have no place to put it but here.....
Ok so...please help me understand this question....in the easiest way possible...
A certain money market accout that has a balance of $48000 during all of the last month earned $360 in simple interest for the the month. At what simpe annual rate did the account earned interest last month?
A. 7%
B. 7.5%
C. 8%
D. 8.5%
E. 9%
I understand that you are supposed to use I = P R T....but are we always supposed to assume that the T is in years regardless if I and P are in months?
Interest in calculated on the amount in the account i.e $48,000. If the interest is calculated yearly but pain monthly then for it is done as follows.
$48,000 is the monthly amount paid at 9% annually is
But this is an annual amount so to make it monthly divide by 12.