Question

You make monthly payments on your car loan. It has a quoted APR of 6.7% ​(monthly compounding). What percentage of the outstanding principal do you pay in interest each​ month?

Answer 1

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%