When interest is calculated for periods shorter than a year, the formula to calculate interest is:

A. I = (MV ? P)/T, where I = interest calculated, MV = maturity value, P = principal and T = number of months.
B. I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = (number of months ÷ 12).
C. I = P × R × T, where I = interest calculated, P = principal, R = monthly interest rate, and T = (number of months ÷ 12).
D. I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = number of months.


Answer: B

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