When calculating interest accrued, you should ____.

Question

(1 point)
Responses

multiply the principal by the APR
multiply the principal by the APR

multiply the principal by the APR and number of months
multiply the principal by the APR and number of months

multiply the principal by the APR and number of months, then divide by the total number of months in the year
multiply the principal by the APR and number of months, then divide by the total number of months in the year

multiply the principal by the APR and the number of months in the year, then divide by the number of months earning interest

Answer 1

The correct response is:

multiply the principal by the APR and number of months, then divide by the total number of months in the year

This formula is commonly used to calculate simple interest accrued over a specific period of time using the annual percentage rate (APR).