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Monthly interest Rate is 1.5% and the factor for 24 is .5666667

Principal loan is Php218,009.78 payable in 24 equal monthly installments of Php12,353.89. Qouted Interest rate per month is 1.5%. I am wondering how they got the factor of 0.5666667. What is the formula to get the factor? It seems the effective interest is so high.

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The actual interest rate is 36%. (1.5*24). Where did you get the 0.5666667 from 24/36 is 0.6666667.



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Posted on Dec 10, 2008

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