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Rama09 [41]
3 years ago
15

You make monthly payments on your car loan. It has a quoted APR of 6.7% ​(monthly compounding). What percentage of the outstandi

ng principal do you pay in interest each​ month?
Business
1 answer:
natulia [17]3 years ago
8 0

Answer:

Monthly percentage rate = 0.55%

Explanation:

DATA:

APR = 6.7%

Monthly interest percentage =?

Solution:

Basically APR means Annual percentage rate refers to annual rate of interest charged to borrowers and paid to investors.

Here we have asked to find the monthly interest percentage. In order to find that out, we need to divide APR by 12 months.

Monthly percentage rate = APR/12months

Monthly percentage rate = 6.7%/12months

Monthly percentage rate = 0.55%

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