35k is a small figure, it possible not to have a trail. Ah kong ah mah their monies maybe kept under the pillow, you can't say they must keep money in the bank. Some more you can always say this relative give 10k, that relative borrow 10k. I think it cannot be proven wrong or cheating.

If one buys a car with cash for 150k or so, then it's different story.

This post has been edited by puchongite: Jul 20 2015, 08:13 PM

As long as your money sources can be explained, there is no worries. If you are asked to explain, just explain lar. No big deal.

Actually it's the opposite !

You don't even need calculation to know which is better. All that you need is business sense !

The banks take your FD money and loan it to people as car loan. On FD side they give out interest, on the loan side they collect interest.

Banks are not charity organization. They have to make money.

So business sense tells us FD side is smaller money than the loan side.

A lot of people have serious conceptual problem about money :-

Pay every month 500, and after 1 years, sum it as paid only 500 x 12 = 6000.

Wrong !

After 5 years, paid only 6k x 5 = 30k.

Big terrible mistake which they don't realize.

To convert from flat rate to annual % rate :-

Based on the little which I read, yes, there is a formula for it but the formula cannot be solved analytically (but can be solved using numerical scheme).

So knowing the formula is useless for men in the street.

However, Excel has a function @RATE(...) which you can use to get the result or you use the online one which is more convenient.