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Working out loan repayments. If you borrow 100k over 20 years then roughly you'll be paying interest on 50k every year. If the rate is 8% then that's 4k in inte
by stormdennis 6y ago
Working out loan repayments.
If you borrow 100k over 20 years then roughly you'll be paying interest on 50k every year. If the rate is 8% then that's 4k in interest every year. You'll be paying back roughly 5k of the loan every year, so your annual repayment well be 9k a year or 750a month
- saagarjha 6y ago(Keep in mind that due to how compounding works, averaging interest in this way will underestimate it slightly.)
- stormdennis 6y agoYes but the point is that it's just a back of an envelope estimate. I'm amazed that it's been downvoted as it's actually a technique that's used in this way all the time, or at least was anyway. I don't know about now when everyone has a smartphone.