Question

how did you get the .01 if the apr is 12%?

how did you get the .01 if the apr is 12%?

Homework Answers

Answer #1

APR should be divided by 100 first as it is in percentage form. Then in order to get it in monthly rate, this should be divided by 12 as a year consists of 12 months.

Therefore,

Monthly rate = (APR / 100) × (1 / 12)

                        = (12 / 100) × (1 / 12)

                        = 0.12 × (1 / 12)

                        = 0.12 / 12

                        = 0.01 (Answer)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are borrowing $200,000 on a 30 year, 12% apr, monthly payment, mortgage loan. How much...
You are borrowing $200,000 on a 30 year, 12% apr, monthly payment, mortgage loan. How much will be your principal repayment from your monthly mortgage payment at the end of the second month?(Make a table for the mortgage loan payment schedule) Can you explain how to get interest and principle repaid please
At time 2/01/2012, you take a long futures position with maturity 15/03/2012. How much did you...
At time 2/01/2012, you take a long futures position with maturity 15/03/2012. How much did you eventually pay for your position in the S&P500 futures? (What does it mean, when it says how much did you eventually pay) date Future price settle price daily gain 2/01/2012 1252.6 1252.6 0 3/01/2012 1272.1 19.5 4/01/2012 1273 0.9 5/01/2012 1273.1 0.1 6/01/2012 1274.2 1.1 9/01/2012 1275.6 1.4 10/01/2012 1286.1 10.5 11/01/2012 1288.2 2.1 12/01/2012 1291.7 3.5 13/01/2012 1288.9 -2.8 16/01/2012 1288.9 0 17/01/2012...
You get a 72 month loan. The interest rate is 6.0% APR and the loan is...
You get a 72 month loan. The interest rate is 6.0% APR and the loan is for $20,000. How much interest and principal will you pay the first month of the loan? How much interest and principal will you pay during the first year? Solve without Excel using financial calculator or formulas.
Correct answer is 751.67. Please show how you got everything! No shortcuts! How did you get...
Correct answer is 751.67. Please show how you got everything! No shortcuts! How did you get Z? If can, please show how you do it on a Ti-84 calculator? A previous study of nickels showed that the standard deviation of the weight of nickels is 250 milligrams. A coin counter manufacturer wants to estimate the mean weight to within 15 milligrams with 90% confidence. How many nickels does he need to weigh?
Use the data below to answer this questions. Period Employment Jan-01 1,879.50 Feb-01 1,901.00 Mar-01 1,925.30...
Use the data below to answer this questions. Period Employment Jan-01 1,879.50 Feb-01 1,901.00 Mar-01 1,925.30 Apr-01 1,914.60 May-01 1,961.50 Jun-01 1,960.60 Jul-01 1,953.40 Aug-01 1,940.20 Sep-01 1,928.00 Oct-01 1,909.20 Nov-01 1,896.40 Dec-01 1,881.40 Jan-02 1,880.20 Feb-02 1,884.00 Mar-02 1,902.60 Apr-02 1,913.40 May-02 1,937.40 Jun-02 1,990.90 Jul-02 1,994.80 Aug-02 2,013.10 Sep-02 2,002.30 Oct-02 1,982.50 Nov-02 1,969.00 Dec-02 1,959.20 Jan-03 1,928.20 Feb-03 1,952.40 Mar-03 1,980.40 Apr-03 1,972.00 May-03 1,987.80 Jun-03 2,018.70 Jul-03 2,027.80 Aug-03 2,030.20 Sep-03 2,012.20 Oct-03 2,032.30 Nov-03 2,008.30...
Where did you get the write off for the bad debt.
Where did you get the write off for the bad debt.
Explain how a health care organization could or did get impacted by a type of security...
Explain how a health care organization could or did get impacted by a type of security and the implications to the organization. How would you prevent this from occurring at your organization?
You are comparing two credit cards to apply. Vaster Card charges you an APR of 22.4%,...
You are comparing two credit cards to apply. Vaster Card charges you an APR of 22.4%, compounded daily. Misa card charges you an APR of 22.55%, compounded monthly. Assuming 12 months in a year and 365 days in a year, which card should you get? Question 3 Part A: Identify the correct formula for identifying the effective interest of Vaster Card.
If you purchased a $10,000 certificate of deposit today with an APR of 12% with monthly...
If you purchased a $10,000 certificate of deposit today with an APR of 12% with monthly compounding, what would the CD be worth when it matures in six years? must show work/calculation
The following information pertains to R: Gross accounts receivable balance as of 01-01-15 was $850,000 Allowance...
The following information pertains to R: Gross accounts receivable balance as of 01-01-15 was $850,000 Allowance for doubtful accounts balance as of 01-01-15 was $51,000 Total sales during 2015 (all sales were on a credit basis) were $5,200,000 AR write-offs during 2015 were $10,000 R’s 12-31-15 AR aging analysis indicates a required balan1ce in the allowance for doubtful accounts of $60,000. The NRV of R’s receivables as of 12-31-15 was $940,000. On the basis of the above, how much cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT