To find the monthly periodic interest rate from an annual percentage rate (APR), you need to divide the APR by the number of months in a year.
1. Given the annual percentage rate (APR) is [tex]\( 14.75\% \)[/tex].
2. To find the monthly periodic interest rate, divide the APR by 12 (since there are 12 months in a year):
[tex]\[
\text{Monthly Periodic Interest Rate} = \frac{APR}{12} = \frac{14.75\%}{12}
\][/tex]
3. Perform the division to get the monthly rate:
[tex]\[
\frac{14.75}{12} \approx 1.229167 \%
\][/tex]
4. Round the result to the nearest hundredth of a percent. When rounding 1.229167 to the nearest hundredth:
[tex]\[
1.229167 \approx 1.23 \%
\][/tex]
Therefore, the monthly periodic interest rate, rounded to the nearest hundredth of a percent, is [tex]\( 1.23\% \)[/tex].
So, the correct answer is:
[tex]\[
1.23\%
\][/tex]
