When calculating simple interest, what must you do if you want to invest for months or weeks instead of years?

Simple interest is commonly calculated using an annual interest rate, so the time must be expressed in years. Convert months or weeks into a fraction of a year before using the formula I = P × r × t. For example, 3 months is 3/12 of a year. The correct choice is “Interest rates are annual, so you must convert the units into years.”

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