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Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different

from those presented here. For long-term loans, the differences may be pronounced.


Assume that you take out a $3000 loan for 30 months at 9.5% APR. What is the monthly payment?

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The monthly... View the full answer

apr.png

APR Formula and Calculation Fees Interest
APR 2 ((m) X 365) X 100 H. where:
Interest 2 Total interest paid over life of the loan
Principal 2 Loan amount so = Number of days in loan term

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