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Question 2 Find the monthly interest rate. What is the monthly interest rate if an annual rate is 17.5%? 1.4% 1.46% 16.5% 14.58% 1.4% 1.46% 16.5% 14.58% Solution Annual Interest Rate = 17.5% Monthly Interest Rate = Annual Interest/Number of Months in Year => Annual Interest Rate/12 => 17.5%/12 => 1.45833% Hence the correct answer is Option B.

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Question 2 Find the monthly interest rate. What is the monthly interest rate if an annual rate is 17.5%? 1.4% 1.46% 16.5% 14.58% 1.4% 1.46% 16.5% 14.58% Solution Annual Interest Rate = 17.5% Monthly Interest Rate = Annual Interest/Number of Months in Year => Annual Interest Rate/12 => 17.5%/12 => 1.45833% Hence the correct answer is Option B

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