First you will need to find the annual interest amount. To do this you will need to find 6% of 112,500.
6% can be written in decimal form as .06, so we can multiply .06 to 112,500 to find the annual interest rate.
.06 • 112,500=6,750
6,750 is the annual interest amount.
The next part of the question asks the monthly interest rate. You know there are 12 months in a year so you can divide the annual interest amount by 12.
6,750÷12=562.5
$562.5 is the monthly interest payment and rounded to the nearest dollar would be
