the annual interest rate of Jacques' savings account is 3.6%, and simple interest is calculated monthly. What is the periodic interest rate of Jacques' account?

Question

anonymous · Answer

The effective interest rate for each compounding period. P = R/m where R is the annual rate.  For example, you want to know the daily periodic rate for a credit card that has 18% annual interest; enter 18% and 365.

Interest Rate (R)
is the nominal interest rate or "stated rate" in percent. r = R/100
Compounding Periods (m)
is the number of times compounding will occur during a period.
 
Periodic Interest Rate (P)
This is the rate per compounding period, such as per month when your period is year and compounding is 12 times per year.

0.3%