If the annual rate of interest in a market is 12%, the monthly rate of discount will equal
A)1%.
B)12%.
C)24%.
D)144%.

Name: If the annual rate of interest in a market is 12%, the monthly rate of discount will equal A)1%. B)12%. C)24%. D)144%.
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Question

Quizplus · Accepted Answer

The monthly rate of discount is calculated by dividing the annual rate of interest by the number of months in a year, which in this case is 12. 
So, the monthly rate of discount = 12% / 12 months = 1%.

If the Annual Rate of Interest in a Market Is