What is the interest on a $1,000 note for 1 month at a 8% annual rate?

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Multiple Choice

What is the interest on a $1,000 note for 1 month at a 8% annual rate?

Explanation:
Interest is found by multiplying the principal by the annual rate and the portion of the year the money is invested. Here, the principal is 1,000 dollars, the annual rate is 0.08, and one month is 1/12 of a year. Multiply: 1000 × 0.08 × (1/12) = 1000 × 0.006666... = 6.666... dollars. When rounded to the nearest cent, that becomes 6.67 dollars. So the interest is $6.67.

Interest is found by multiplying the principal by the annual rate and the portion of the year the money is invested. Here, the principal is 1,000 dollars, the annual rate is 0.08, and one month is 1/12 of a year. Multiply: 1000 × 0.08 × (1/12) = 1000 × 0.006666... = 6.666... dollars. When rounded to the nearest cent, that becomes 6.67 dollars. So the interest is $6.67.

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