Q1) Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $60?

Answer/

PMT= 60

PV = - 3200

N = ?

I = 12.9 divided by 12

N = 79.66 the answer must be in years 79.66 divided by 12 = 6.638 years is the final answer.

Please someone explain to me why is 79.66 is divided by 12 and not multiplied by 12?

Q2) You are preparing to make monthly payments of $100, beginning at the end of this month, into an account that pays 5 percent interest compounded monthly. How many payments will you have made when your account balance reaches $10,000?

Answer/

PMT = 100

FV = - 10.000

I = 5 divided by 12 = 0.4167

n = ?

83.77 is the time of payment

please someone explain to me why I the 5 % is divided by 12 and not multiplied by 12?

Q3) Jogging Gear is considering a project with an initial cash requirement of $238,400. The project will yield cash flows of $4,930 monthly for 65 months. What is the rate of return on this project?

Answer/

PMT = - 4930

PV = 238400

n = 65

I = ?

answer I = 0.9481 multiply by 12 months final answer is 11.38%

Please someone explain to me why the interest is multiplied by 12 and not divided in this case?

I'm having issue understanding when to divide or multiply the final answers. the questions provided with multiple chooses on my HM. but can someone please explain to me what it mean to divide by 12 months ,and what if mean to multiply by 12 months.