There is a great ad for this in the LA Times today. It says something like this in the fine print: "0% APR for 60 months works out to $16.67 per $1,000 borrowed."
Yeah, but the way it was worded, one expected the number to reflect the interest payment, NOT the principal or total payment. APR = annual percentage RATE, not PAYMENT. Thus, if you are going to quote a dollar amount related to the interest paid based on a 0% rate, then that dollar amount is ZERO.Here is an exercise for you ... Get out your calculators and divide $1,000 by 60(months)...$16.67
So if you financed X at 0% APR for 60 months:
$100,000/$1,000 = 100 x $16.67 = $1,667/mo
$120,000/$1,000 = 120 x $16.67 = $2,000.40/mo
This is the quickest and easiest way of getting your payment. You can also multiply your amount financed by .01667, this will give you your monthly payment as well.