What is the formula to convert monthly payments to bi-weekly payments?

To convert monthly payments to bi-weekly payments, the correct formula is to take the monthly payment amount, multiply it by 12 to get an annual total, and then divide that annual total by the number of bi-weekly periods in a year, which is 26 (since there are 52 weeks in a year and two weeks comprise each bi-weekly period).

This method effectively allows you to find the bi-weekly payment amount by first determining the total amount paid in a year based on monthly payments and then spreading that total evenly across each bi-weekly payment period. The rationale behind this conversion is that you want to maintain the same financial commitment over the course of the year, but simply adjust it to reflect a different payment frequency.

The choice that reflects this accurate calculation is thus the one that multiplies the monthly payment by 12 before dividing by 26. This ensures that the payments are calculated in a way that maintains the intended annual payment while adjusting for the different frequency of payment.