If we calculate a periodic interest rate,say a monthly rate,in order to get the simple annual rate,we can multiply the periodic rate by the number of periods within a year.

Question

Quizplus · Accepted Answer

This is the correct formula for converting a periodic interest rate to a simple annual rate. For example, if the monthly interest rate is 1%, then the simple annual rate would be 12% (1% x 12 months in a year).

If We Calculate a Periodic Interest Rate,say a Monthly Rate,in