Apr 3 2012, 09:40 AM
QUOTE(doncityz @ Apr 3 2012, 08:52 AM)
I got 3 property loans la brader. Pls la. I know how housing loan works.
What I am commenting was about the car loan explained by cherroy.
It is NOT worked up by the annual interest like a house loan. You don't
deduct the balance and re apply the interest % again.
Senang lidis la.. you go plug in my values up there in
ANY CAR LOAN CALCULATOR TOOL IN INTERNET.
You will see my calculation is right and each month repay is 1916.66.
That is because interest is applied for the initial loan amount and
divided throughout the tenure.
Which makes you an even bigger What I am commenting was about the car loan explained by cherroy.
It is NOT worked up by the annual interest like a house loan. You don't
deduct the balance and re apply the interest % again.
Senang lidis la.. you go plug in my values up there in
ANY CAR LOAN CALCULATOR TOOL IN INTERNET.
You will see my calculation is right and each month repay is 1916.66.
That is because interest is applied for the initial loan amount and
divided throughout the tenure.
Cherroy is NOT trying to explain how car loan works. He's showing the effective interest rate the car loan has. Why effective interest rate? Because you want to compare apple to apple, and effective interest rate is how housing loan, saving account, FD, and many others are calculated.
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