alina takes out a $1000 loan with a monthly interest rate of 5%. what is the interest rate per year for this…
alina takes out a $1000 loan with a monthly interest rate of 5%. what is the interest rate per year for this loan?
Answer
Explanation:
Step1: Recall the conversion formula
Annual - rate = Monthly - rate×12
Step2: Substitute the given value
Annual - rate = 5%×12 Annual - rate = 60%
Answer:
60%