When interest is calculated for periods shorter than a year,the formula to calculate interest is:
A)I = P x R x T,where I = interest calculated,P = principal,R = annual interest rate,and T = number of months.
B)I = P x R x T,where I = interest calculated,P = principal,R = annual interest rate,and T = (number of months /12)
C)I = P x R x T,where I = interest calculated,P = principal,R = monthly interest rate,and T = (number of months / 12).
D)none of the above.

Question

Quizplus · Accepted Answer

The correct formula for calculating interest for periods shorter than a year is I = P x R x T, where T is the fraction of the year, calculated as the number of months divided by 12.

When Interest Is Calculated for Periods Shorter Than a Year,the