Skip to main content
Personal Finance & Money

Return to Question

removing MathJax formatting; adding tags
Source Link
edit approved Nov 25, 2014 at 12:26
Community Bot
edit approved Nov 25, 2014 at 12:26
Community Bot
  • 1

In some loan situations, especially car leases, people like to talk about the money factor, which is a number given by $$ \frac{\text{interest percentage}}{2400} $$ Where

interest percentage/2400

Where does the $2400$2400 come from? I understand that it is the universal number to use, however I would like to know why that number?

In some loan situations, especially car leases, people like to talk about the money factor, which is a number given by $$ \frac{\text{interest percentage}}{2400} $$ Where does the $2400$ come from? I understand that it is the universal number to use, however I would like to know why that number?

In some loan situations, especially car leases, people like to talk about the money factor, which is a number given by

interest percentage/2400

Where does the 2400 come from? I understand that it is the universal number to use, however I would like to know why that number?

Tweeted twitter.com/#!/StackFinance/status/537216513934381056
Post Migrated Here from math.stackexchange.com (revisions)
Source Link
Joelle_K
Joelle_K

Why is the money factor defined the way it is?

In some loan situations, especially car leases, people like to talk about the money factor, which is a number given by $$ \frac{\text{interest percentage}}{2400} $$ Where does the $2400$ come from? I understand that it is the universal number to use, however I would like to know why that number?