Question
If the annual interest rate is 12%, what is the monthly interest rate?
(1 point)
Responses
1%
1%
1.2%
1.2%
12%
12%
144%
(1 point)
Responses
1%
1%
1.2%
1.2%
12%
12%
144%
Answers
GPT-4o mini
To find the monthly interest rate from an annual interest rate of 12%, you would divide the annual rate by 12 (the number of months in a year):
\[
\text{Monthly Interest Rate} = \frac{12\%}{12} = 1\%
\]
Therefore, the monthly interest rate is **1%**.
\[
\text{Monthly Interest Rate} = \frac{12\%}{12} = 1\%
\]
Therefore, the monthly interest rate is **1%**.