bullet loan This is a topic that many people are looking for. thetruthaboutdow.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, thetruthaboutdow.org would like to introduce to you Lesson 11 video 2: Balloon Payment Loan and Interest Only Loan. Following along are instructions in the video below:
“There are four main types of loan the loan payment loan interest on the loan loan constant amortisation long constant payment loan so the last one is the most common and i will explain it in the following videos. I m in this video. I m going to explain the first two types balloon payment loan in this type of loan. The borrower receives the loan takes the loan at the present time at year 0.
And has to repay the loan in the end of the a grid period. The the borrower has to pay the principal and the interest for the loan in the end of the period. So there is no installment..
There is no monthly or annual or per period payments. The borrower takes the loan at the present time and repays the entire loan with interest in the end of the period so for example if the borrower is going to take a loan of 1000. At present time with 8 let s say for 4 years then the borrower doesn t need to pay anything at year 1 2. 3.
But the borrower has to pay the entire loan with interest. The principal and interest in the end of year 4. So in order to calculate the money that the borrower has to pay to the..
Lender we have to multiply the 1000. Of loan by the factor f over p. 8 of interest loan interest and after 4 years so this this factor equals 1 plus 8 percent. Power.
4. And the result is going to be a thousand three hundred sixty one so from this a thousand three hundred sixty one dollars a thousand is the principal and 361 is the the interest of this loan that has to be paid in the end of their period. Which was year 4..
So the borrower pays the principal of 1000 plus 361 of interest to the lender in the end of the period. The second type of loan is called interest on a loan in this type of loan borrower takes the the loan at present time let s say. 1000 then borrower returns this 1000. In the end of the agreed period.
But borrower has to pay equal amounts of annual interest to to the. Lender so let s assume a borrower takes the loan of. 1000 with a 8 interest at present time then borrower has to pay 1000..
Multiply. 8. Which comes to 80 per year from year 1 to year four let s say four years is the time interval that is agreed between lender and borrower and so borrower has to pay 80 per year from year 1 to year for to the lender. And also the borrower has to pay the principal of 1000 at the ” .
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