Interest on Home Loans is calculated at a reducible rate. This means that the interest is calculated on the balance owing rather than the initial amount borrowed.
It is best to do this in a table.
Interest is calculated each month . Then this is added to the Prinicipal and a payment is made. The interest next month is then calculated on the new amount owing.
To find the total cost of a loan or the total amount owing, multiply the monthly repayments by the number of repayments.
It is best to do this in a table.
Interest is calculated each month . Then this is added to the Prinicipal and a payment is made. The interest next month is then calculated on the new amount owing.
To find the total cost of a loan or the total amount owing, multiply the monthly repayments by the number of repayments.