To calculate the monthly interest on 2000 multiply that number by the total amount. For example it can calculate interest rates in situations where car dealers only provide monthly payment information and total price without including the actual rate on the car loan. Where r is in decimal form.
Interest is paid on the total amount of money borrowed also known as the.
00083 x 2000 1660 per month. Your monthly interest rate is 083. Principal X Rate X Time Interest Amount. To find the interest plug these values into the equation.