If I have 120k then put the money in fd earning 3.5% while taking loan and paying for the car maybe cost 100k while the interest for car only 2% more worth it right? I earn extra 1.5% after deduct loan interest

I mean don't take out the 120k but pay the loan from income.

This post has been edited by ic no 851025071234: Jul 27 2015, 09:14 AM

Ya I read the post then I understand the bank earn higher interest in terms of % based on the later balance due to lower amount and flat interest.

But if calculate based on total ringgit value it earn higher by just put bank. I do a calculation on loan street with flat interest 100k 2.5% for 5 yrs end up need to pay rm112500 total.

If fd compound interest same scenario but interest rate 3.5% I will end up having rm118768.

My scenario is based on not touching the fd money and I pay the loan based on extra income 1k a month or whatever the loan requires. Like that better right?

Ok th nx bro. Great tip.