Question

The annual interest rate of Jacques' savings account is 3.6%, and simple interest is calculated monthly. What is the periodic interest rate of Jacques' account?

A. 0.6%
B. 0.9%
C. 0.3%
D. 1.8%

Answer 1

C is correct

Explanation:

0.3 is correct

Answer 2

The periodic interest rate of Jacques' account is 0.3%

Explanation:

The annual interest rate of Jacques' savings account is 3.6%.

In a year, there are 12 months. So dividing the total annual interest rate with 12 we will get the interest for each month.

Hence, the monthly interest rate will be,

`=(3.6)/(12)`

`=0.3\%`

Therefore, the periodic interest rate of Jacques' account is 0.3%