What Is The Monthly Periodic Rate On A Loan With An Apr Of 18.6%?

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 To find the monthly periodic rate from the Annual Percentage Rate (APR), you divide the APR by the number of compounding periods in a year. Since there are 12 months in a year, you would divide the APR by 12 to find the monthly periodic rate.

So, for a loan with an APR of 18.6%:

Monthly Periodic Rate = (APR / Number of compounding periods per year) = (18.6% / 12) = 1.55%

Therefore, the monthly periodic rate on a loan with an APR of 18.6% is 1.55%. This means that the interest rate applied to the outstanding balance of the loan each month is 1.55% of the remaining principal.

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