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Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.

Assume that you take out a $3000 loan for 30 months at 8% APR. How much of the first month's payment is interest? 

 Apr 11, 2022
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$3,000  x  0.08 / 12 ==$20 - interest on the first month's payment.

 Apr 11, 2022

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