Depreciation and Loans (HSC SSCE Mathematics Standard): Flashcards

Interest calculated on current balance, not original amount

Original amount borrowed

Cost of borrowing money

$\text{Loan payment} \times \text{Number of repayments}$

$\text{Total to be paid} - \text{Principal}$

Pay less interest over time as balance decreases

Multiply table value by number of thousands borrowed

Higher monthly payments but much less total interest paid

Reduce time to repay and total interest charged

Many fees are negotiable; compare between institutions