How is interest rate calculated on a car loan?
I recently got a new car and a car loan to help pay for it. But the payments I’m making each month are a bit more expensive than I was expecting. I’m assuming it’s my interest rate that is causing my monthly payments to be higher, but I want to know for sure. How do you calculate the interest rate on a car loan?
- Divide your interest rate by the number of payments you make in a year
- Multiply it by the remaining balance for your loan