> Could anyone work out the exact rate. The true effective interest rate varies with time so the answer to your question would be a set of equations. Professo

> Could anyone work out the exact rate. The true effective interest rate varies with time so the answer to your question would be a set of equations. Professor Stefan Yard at Lund University in Sweden has made a calculation with a 10-year JAK loan, and compares it to borrowing money in a normal bank for 5 years and then saving money in the same bank for 5 years without interest (this is how a 10 year JAK loan work) The effective interest rate of the JAK loan is then 6.5% which is higher than the normal bank. Source: Use e.g Google translate to read http://www.jordensvanner.se/2012/gar-det-att-driva-bank-utan-ranta http://www.jordensvanner.se/2012/gar-det-att-driva-bank-utan...