You do understand what compounding is right? Answer, how often do you compound this loan? Different methods might be used
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176958@0)
okay, 20197 compounds monthly for three years, 20197 x (1 + 6.2%/12 months) ^(3years x 12 months) = 30096
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176966@0)
e^(6.2% x 3) =1.2044, 而(1 + 6.2%/12 months) ^(3years x 12 months)=1.2038, 怎么按月付还要低呢?
-flipflop(翻云覆雨);
2001-8-23(#176988@0)
principal has gone down to 20197 from 25000, read it
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176995@0)
我是说额外的利息支出部分,按你的公式,连续付principal x e^(6.2% x 3) =1.2044 principal,按月付principal x (1 + 6.2%/12 months) ^(3years x 12 months)=1.2038 principal
-flipflop(翻云覆雨);
2001-8-23(#177001@0)
How's your logic my man? e^(6.2% x 3) =1.2044 is compounding continously, continously continously continously continously continously continously continously
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#177009@0)
不是连续付， 是连续算， Terms of payment has nothing to do with method of calculation
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#177019@0)
哦,明白了
-flipflop(翻云覆雨);
2001-8-23(#177025@0)
另外,双周付是不是principal x (1 + 6.2%/26 bi-weeks)^(3years x 26 bi-weeks)=1.2041 principal?
-flipflop(翻云覆雨);
2001-8-23(#177005@0)
Yeah, perfect, except weeks are not exact, it varies from 52 to 54 depends on the year ar, one more thing, it's not how you pay it, it's how they calculate it, thus you can be making bi-weekly paymentbut they could be compounding it weekly,
as you can see, the more frequent they compound, the higher the rate
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23{113}(#177016@0)
That's a different story, if you pay down the principal quicker then obviously your interest will drop, loan interest is being compounded on outstanding balance, four things to keep in mindOutstanding Loan Balance(lower the better)
The amount of your periodic payment (bigger the better)
Compounding period within a year (fewer the better)
Money (more the better)
also, if you can beat down the principal before the next compounding effect (ie next month)kicks in, then it's gonna be less, so always speak in terms of rates, since they are absolute
again, how frequent you pay only concern the with item #1
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23{435}(#177027@0)
The first one is compounding continously, continously continously continously continously continously continously continously
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176999@0)
Car loans are compounded
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176905@0)
如果从银行贷款，算法是不是应该那种算法。25,000 x 6.2% x 3=
-guest:guest;
2001-8-23(#176916@0)
25000 x e^(6.2% x 3) = 30110.55, continuous compounding, "e" is the exponential factor, a constant
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176923@0)
Is your car loan compound monthly? or continuously?
-slimpiggy(瘦猪犹如插翅虎);
2001-8-23(#176930@0)
Is that "e = 2.718281828"?
-smile-li(smile);
2001-8-23(#177151@0)
How much is the down payment?
-hearts(hearts);
2001-8-23(#176960@0)
There is a website that can help you to figure it out.
-hearts(hearts);
2001-8-23(#176962@0)
And if you want to calculate your mortgage, go to this site and do it by yourself. By the way they call it mortgage when you borrowing money for your house and the money for car is called loan.
-hearts(hearts);
2001-8-23(#176970@0)