SellUCars,Inc.offers you a car loan at an annual interest rate of 8% compounded monthly.What is the monthly interest rate on the loan?

Question

Quizplus · Accepted Answer

To find the monthly interest rate, we need to use the formula:

Monthly interest rate = (Annual interest rate / 12) / 100

Plugging in the values given in the question, we get:

Monthly interest rate = (8 / 12) / 100
                     = 0.00666666666667
                     = 0.66%
                     
Therefore, the correct answer is (C) 0.66%.