Answer:
[tex]i_m=0.01945[/tex] or 1.945%
Step-by-step explanation:
Term annual percentage rate(APR) is the annual interest rate charged ona financial year for a duration of one year. APR can be converted to weekly, monthly, daily or even semi-annual rates using the below formula.
Effective rate for period = (1 + annual rate)(1 / n of periods) – 1
Rate is given as:
[tex]i_m=(1+i)^\frac{1}{12}-1\\i_m=(1+0.26)^\frac{1}{12}-1\\i_m=0.01945[/tex]
