If a loan carries a 12% annual rate and interest is calculated monthly on a simple proportional basis, the monthly rate...

Type: MCQ • Marks: 1

If a loan carries a 12% annual rate and interest is calculated monthly on a simple proportional basis, the monthly rate is:

A. 0.12

B. 0.06

C. 0.01

D. 0.0012

Explanation

12% ÷ 12 = 1% per month, assuming the applicable terms permit proportional monthly calculation.

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UPSC Principal & Vice Principal Management Finance Administration

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