SOLUTION: monthly interest of 18% per annum on 50 dollars

Question 830772: monthly interest of 18% per annum on 50 dollars

Answer by JulietG(1812) (Show Source): You can put this solution on YOUR website!
Clarification is needed here.
BUT, assuming it's simple interest, and they're just looking for a division problem...
.
$50 at 18% interest would be:
$50 * .18 = $9
.
That's $9 per year. 12 months in a year.
Divide 9 by 12 to get:
9/12 = $0.75
.
It doesn't seem like a lot, but when it becomes compounded interest, it multiplies quickly. (Compounded interest is interest on the interest -- that's how credit card companies make their money. They compound the interest daily.)
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