The formula to calculate the Monthly Accrued Interest is:
\[ I_m = \frac{P \cdot r}{12} \]
Where:
Monthly accrued interest is the amount of interest that accumulates on a principal amount over the course of a month. This interest is typically calculated based on an annual interest rate, which is then divided by 12 to determine the monthly interest. Accrued interest is important for understanding how much interest will be owed or earned over time, and it is commonly used in various financial contexts such as loans, savings accounts, and investments.
Let's assume the following values:
Using the formula to calculate the Monthly Accrued Interest (I_m):
\[ I_m = \frac{10,000 \times 0.05}{12} = \frac{500}{12} \approx 41.67 \text{ dollars} \]
The Monthly Accrued Interest is approximately $41.67.
