If you now the annual interest rate, what is the monthly rate?

Answer by  gcmeyer2 (787)

The calculation for this is very simple. All you need to do is divide the annual interest rate by 12 and that will give you the monthly rate. However, the best way to minimize the interest is to pay more than is required.

Answer by  Elizabeth73 (292)

You can minimize the amount you are paying not only by dividing the annual interest rate by 12 in order to determine what your interest rate is monthly, but also by knowing the date your interest compounds so that you can reduce your principal prior to the interest compound date.

Answer by  adawg (247)

Take the annual interest rate and divide it by 12 to find out what the monthly rate of interest is.