Loans have become part of the life of every person. They are issued by all banks and at different interest rates. It would seem that it could be easier than calculating the interest on the loan. But with the same interest rate and the same loan amount, you can pay a different amount. The payment amount depends on what kind of payment you will have - annuity or differentiated.
Instructions
Step 1
Choosing a loan, and the bank to receive it, you focus on the interest rate on the loan. If one bank offers a 10% rate and another 11%, then you naturally choose the bank that offers a lower interest rate. But even if you took out a loan at the same low interest rate, the payment amount may vary.
Step 2
With annuity or equal payments made monthly - the amount of payments will be the same throughout the entire crediting period. With differentiated payments - payments on the balance of the outstanding loan, the initial amount of payments will be higher than in the first case. Subsequently, the amount of payments is reduced on a monthly basis and the amount paid for the entire loan will be less. Therefore, taking a loan at one interest rate, for the same number of years, the amount of payments is different, as well as the final result.
Step 3
With differentiated payments - the balance of the debt is reduced, and therefore interest payments are reduced. Accordingly, the total amount of payments will be lower.
Step 4
With an annuity payment, the borrower does not care about the interest and the share that goes to repay the loan. The bank independently divides the paid loan amount into repayment and interest parts. Therefore, in the first years of maturity, the share of funds that go to interest is higher. At the end of the payments, most of the amount is used to repay the loan principal. The bank takes its profits up front. If you decide to repay the loan, then no one will return the interest taken by the bank in advance.
Step 5
Therefore, for different types of loan repayment, the total costs for the same interest are different. That is, this is such mathematics when 2 + 2 does not always equal 4.
