# Interest Calculation Home Loans

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## Difference equation – interest

It says: A balance over 10 000 â € is repaid with an annual interest rate of â,¬ 2000. The interest rate is calculated at the end of the financial year at 10% of the remaining debt. What is the process equation and when will the loan be repaid? The “process capability equation” is a reversal, ie the capital status for The year is determined from that of the respective year.

They start with the year zero, n = 0 and the status K_0 = 10000,00. At the beginning of the next year, year 1, the p% interest of K_0 was added and R = 2000.00 was paid out as partial payment R, the new status is now L_1. Thus, the new capital status K_ (n + 1) is the difference of K_n plus interest minus the interest rate R. For the interest at p%, the multiplier uses q = 1 + p / 100. This independent difference model can be presented cheaply in a spreadsheet (eg Excel), as it allows the table rows to be torn off until a positive difference appears for the first time (abort condition).

The last payable amount is therefore less than 2000,00. It is the total loan amount including interest. When will the loan be repaid and what is the last installment paid? Then I will provide for matching the recursion equation and complete the tabletop so describe that completing the document titled Complete for later reader.

If the latter installment payment is not made until the end of the eighth year, € 564.11 is due. I came across a test test, which could probably help you further.

## Interest rate home loan

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