Question

Deovien is taking out a loan with an APR of 17.7% what is the monthly interest rate on the loan?

Answer 1

1.475%

Explanation:

APR is the Annual Percentage Rate. The rate of borrowing money for a year.

Now, we want to know the monthly rate, that is how much interest we have to pay on our investment, PER MONTH!

We know there are 12 months in 1 year, so the APR needs to be divided by 12 to find the monthly rate. Let's do this:

17.7/12 = 1.475

So, the month interest rate is 1.475%