Calculate the periodic interest rate that matches the payment interval for each annuity (to the nearest 0.001%):

Periodic Interest Rate

The rate of interest charged on a loan or earned by an investment for a duration that is less than one year.

Annuity

An economic scheme that delivers a constant payment stream to a recipient, predominantly utilized in preparing for retirement.

Payment Interval

The frequency with which a recurring payment is made, such as monthly or annually.

Comprehend the methodology for calculating the periodic interest rate applicable to diverse annuities.

Verified Answer

Final Answer :

0.487% per month

Learning Objectives

Comprehend the methodology for calculating the periodic interest rate applicable to diverse annuities.