If not compounded monthly, a monthly interest rate is simply 1/12 of the annual rate.
Things do get complicated, though if the interest is compounded monthly. An annual interest rate of R% is equivalent to a monthly rate of
100*[(1 + R/100)^(1/12) - 1] %
Annual Interest Rate divided by 12= Monthly Interest Rate
14.4 %. A+
14.4%
1.5% monthly
1.5 or 1.50
Annual Interest Rate divided by 12= Monthly Interest Rate
14.4 %. A+
Multiply the monthly interest rate by the number of months is a year to calculate the annual interest rate: 2% x 12mo = 24%
Let i = annual rate of interest. Then i' = ((1+i )^(1/12))-1 Where i' = monthly rate of interest
14.4%
1.5% monthly
1.5 or 1.50
1.5% monthly
Assuming 6.5% refers to the annual interest rate, the monthly interest is 111.04 approx.
1.75%
If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.
The monthly interest on $500,000 will depend on the interest rate at the time the money was borrowed. Interest is usually charged as an annual rate and then broken down into monthly segments.