Question

When calculating interest accrued, you should ____.

Answer 1

Answer:

(B)

Step-by-step explanation:

Interest accrued is defined as the interest which we need to pay at the end of some time span. The interest accrued may be on daily basis as well as on monthly basis.

For calculating the interest accrued, we first multiply the principal amount with  APR, this will give the interest of one year.

Then we will multiply it with the  no. of months on which the interest is being calculated and divide it by total no. of months.

This will give the interest accrued every month.

When calculating interest accrued, you should multiply the principal by the APR and number of months, then divide by the total number of months in the year.