# How to count interest by bank loan for car?

Date created: Mon, Apr 19, 2021 9:53 AM

**Best answers**

Date created: Mon, Apr 19, 2021 11:05 AM

For car loans, the interest rate is commonly referred to as the Annual Percentage Rate, or APR. Your interest rate multiplied by the outstanding principal amount is the interest you owe for a particular period of time. Assume that your principal amount is $10,000. Your annual interest rate is 6%.

Date created: Mon, Apr 19, 2021 5:15 PM

Total car loan interest rate: $6613.70 / $50K X 100%; 13.23% (Total Housing Loan Interest Rate) Car Loan On the other hand, you have car loan of $50K at the interest rate of 5% for 5 years term. 1 year car loan interest: $50K X 5%; $2,500. (Yearly) First month car loan interest: $2,500 / 12; $208.33 (First Month)

Date created: Wed, Apr 21, 2021 4:05 AM

=PMT(interest rate as a decimal/12, number of months in loan term, loan amount, with fees) The result is your estimated monthly payment. It will be a negative number, but don’t worry.

Date created: Thu, Apr 22, 2021 3:03 PM

Minus the interest you just calculated from the amount you repaid. This gives you the amount that you have paid off the loan principal. 2. Take this amount away from the original principal to find the new balance of your loan.

Date created: Sat, Apr 24, 2021 4:33 AM

Then, use the following formulas to determine the total interest, monthly interest and monthly instalment of your car loan: Your total interest = interest rate/100 x loan amount x loan period Your monthly interest = total interest / (loan period x 12) Your monthly instalment = (loan amount + total interest) / (loan period x 12)

Date created: Sat, Apr 24, 2021 9:07 AM

Interest = ( i/12 X P ) (1- ( 1+i/12)N X 12. The value generated from this formula is the actual annual rate for loan installments. To make it more optimized, the principal value obtained is divided by 12, thus yielding the value of monthly Car Installment on Bank Leased Cars. As the final word, this formula is being used by many organizations ...

Date created: Sun, Apr 25, 2021 9:49 PM

If you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula works as follows: $20,000 x .05 x 5 = $5,000 in interest. Orli Friedman ...

Date created: Mon, Apr 26, 2021 11:27 PM

Effective rate on a discounted loan = [Interest X Days in the Year (360)/Days Loan is Outstanding] / [Principal - Interest] Effective rate on a discounted loan = (60 X 360/360)/($1,000 - 60) = 6.38% As you can see, the effective rate of interest is higher on a discounted loan than on a simple interest loan.

Date created: Mon, Apr 26, 2021 11:46 PM

Multiply the periodic interest rate of your bank loan by the amount borrowed. For example, if you make monthly payments, you borrowed $4,650 and your loan charges a rate of 0.82 percent each month, you would multiply $4,650 by 0.0082 to get $38.13. Add 1 to the periodic interest rate. In this example, you would add 1 to 0.0082 to get 1.0082.

**FAQ**

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Divide your interest rate by the number of payments you'll make in the year (interest rates are expressed annually). So, for example, if you're making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.

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The

**student loan interest deduction**is a federal income**tax deduction**that allows you to subtract up to $2,500 of the interest you paid on qualified**student loans**from your taxable income. 1 It is one of several tax breaks available to students and their parents to help pay for higher education.http://all-loans-online.com/are-college-loan-interest-payments-tax-deductible

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