1) Car loan is €20000 for 3 years, APR is 7%. Calculate monthly payments according to 2 above mentioned methods. What are the general sums of payments during 3 years according to the 1st and 2nd methods? How big is bank’s charge in every case? Which method of repayment calculation is ‘’cheaper’’ for borrower?
Economy.. please help people!?
Details:
Added 3+ months ago:
I have calculated 1 method, but I don't understand 2ond:
Example:
Business loan is €3000, yearly interest rate of 20%, loan period is 6 months.
1st month repayment sum = 3000/6 + 3000*0,2*31/365 = €550,96
2nd month repayment sum = (3000-500)/5 +2500*0,2*31/365 = €542,47
3rd month repayment sum = (3000-500-500)/4 + 2000*0,2*30/365 = €532,87
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