The correct answer is B. 12.
In the formula for compound interest, \( n \) represents the number of times interest is compounded per year. Since the loan is compounded monthly, \( n \) would be 12 (the number of months in a year).
Select the correct answer.
A loan with a 14% APR is compounded monthly. What value must be plugged in for n in the formula to calculate compound interest on the loan?
A.
365
B.
12
C.
0.14
D.
1
1 answer