What is the monthly interest rate if an annual rate is 12.6 percent?

Answer 1

IF the interest is compounded monthly, as on a revolving credit card or an investment

where monthly compounding is expressly stated, then the interest at the end of each

month should be 1.05% .

It will compound monthly ... guaranteed ... on a revolving debt; that is, where

you owe somebody else money. But where somebody else owes you money,

don't assume that there's any compounding at intervals of any less than a year,

unless it's clearly stated in so many words. If it only says "12.6 percent annually",

then your money could lay there for 364 days without earning a dime.