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Calculating your interest rate displays the true price tag of borrowing money.

The interest rate on a personal loan represents the cost of borrowing money. The interest rate on some loan shows how a lot extra money per month you will need to pay on top of the principle payment. Creating a mathematic formula will support you determine the curiosity rate on your loan. On order to calculate your interest rate, you will want to know the way in which considerably cash you've borrowed (principle), how long you have to pay it back (term), and your monthly payment. Your credit documents will routinely include your curiosity rate.

Instructions

Things You'll Require

Calculator Financial papers

1 For illustration, you've borrowed $2,4 website internet site (principle), you maintain a 24-month phrase, plus you contain a $125 payment every month.

2 Numerous $125 (monthly payment) by means of 24 (phrase of credit) to obtain the total amount you will repay ($3, website website web site).

4 Separate the total interest to be paid ($6 website web site) by the amount borrowed ($2,4 internet site website) to receive the interest rate ( website.25 or 25 percent in this case.)

References

Get Objects: Basic plus Element Interest Rates

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