Answer:
3%
Step-by-step explanation:
To calculate a monthly interest rate, divide the annual rate by 12 to reflect the 12 months in the year. You'll need to convert from percentage to decimal format.
Example: Assume you have an APY or APR of 10%. What is your monthly interest rate, and how much would you pay or earn on $2,000?
Convert the annual rate from a percent to a decimal by dividing by 100: 10/100 = 0.10
Now divide that number by 12 to get the monthly interest rate in decimal form: 0.10/12 = 0.0083
To calculate the monthly interest on $2,000, multiply that number by the total amount: 0.0083 x $2,000 = $16.60 per month
Convert the monthly rate in decimal format back to a percentage (by multiplying by 100): 0.0083 x 100 = 0.83%
Your monthly interest rate is 0.83%
