Divide that number by 100 to convert the interest rate to a decimal from a percentage. Avoid InterestNo financing involved in the purchase of a car means there will be no interest charged which will result in a lower overall cost to own the car. In this case divide 0685 by 100 to get 000685.
With a simple interest loan the interest paid is calculated on the outstanding loan balance.
Simple interest is calculated only on the original sum of money which is known as the principal. Divide the annual interest rate by 12 the number of payments you will make per year. At first more of your monthly payment will typically go toward the interest. Even if you dont already have concrete terms for your loan you can use.