The interest rate factor is used to calculate the amount of interest
that accrues on your loan. It is determined by dividing your loan's
interest rate by 365.25 (the number of days in a year). See the
following table to see some examples of interest rate factors.
Interest
Rate |
Converted
to Decimals |
Divide
by
365.25 |
Interest
Rate Factor |
| 8.99% |
.0899 |
.0899/
365.25 |
.00024613 |
| 8.25% |
.0825 |
.0825/
365.25 |
.00022587 |
| 7.59% |
.0759 |
.0759/
365.25 |
.00020780 |
| 