When Interest Is Calculated for Periods Shorter Than a Year,the

Multiple Choice

When interest is calculated for periods shorter than a year,the formula to calculate interest is:

A) I = P × R × T,where I = interest calculated,P = principal,R = annual interest rate,and T = number of months.
B) I = P × R × T,where I = interest calculated,P = principal,R = annual interest rate,and T = (number of months ÷ 12) .
C) I = P × R × T,where I = interest calculated,P = principal,R = monthly interest rate,and T = (number of months ÷ 12) .
D) I = (MV − P) /T,where I = interest calculated,MV = maturity value,P = principal and T = number of months.