-In the accompanying figure,in the formula in the active cell,why is cell D6 divided by 12?
A) To convert the annual interest rate to a monthly interest rate.
B) To convert the number of payments to a monthly value.
C) To convert the amount borrowed to a monthly value.
D) To determine how much interest is paid each month.

Question

-In the accompanying figure,in the formula in the active cell,why is cell D6 divided by 12?
A) To convert the annual interest rate to a monthly interest rate. 
B) To convert the number of payments to a monthly value. 
C) To convert the amount borrowed to a monthly value. 
D) To determine how much interest is paid each month.

Quizplus · Accepted Answer

The annual interest rate is divided by 12 to convert it to a monthly interest rate because there are 12 months in a year. This adjustment is necessary for calculations involving monthly payments or compounding.

-In the Accompanying Figure,in the Formula in the Active Cell,why