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All rights reserved. Copyright


You are licensed to use this fil
do not remove this license me
- Dr. Peter Achutha PhD (15 M
Car Price
Down payment
Car loan principal
interest rate per year
Car loan period

Current Method of Calculation

Year
1
2
3
4
5

Total
which is a cumulative interest of

This is a fixed interest method and you end up paying i


on money you have already paid to the bank.

Total

ou can download this file from http://www.bachutha.com


ll rights reserved. Copyright Peter Achutha, 2009, Malaysia
ou are licensed to use this file and redistribute this file provided you
o not remove this license message and copyright message.
Dr. Peter Achutha PhD (15 May 2009)
50,000.00
25,000.00
25,000.00
3.00%
5 years

<-- you can change this figure


<-- you can change this figure
<-- you can change this figure
<-- you can change this figure

urrent Method of Calculation -fixed interest on principal for all years


Annual
Interest
repayment
Annual
Monthly
per year ($)
on principal ($)
Repayment ($)
Repayment ($)
750.00
5,000.00
5,750.00
479.17
750.00
5,000.00
5,750.00
479.17
750.00
5,000.00
5,750.00
479.17
750.00
5,000.00
5,750.00
479.17
750.00
5,000.00
5,750.00
479.17

3,750.00
15.00%

25,000.00

28,750.00

hod and you end up paying interest


dy paid to the bank.
If you had worked out what is the interest rate you are actually paying for the money owed:
Actually you are paying a much higher interest as:Annual
Interest
repayment
Annual
Monthly
Year
per year ($)
on principal ($)
Repayment ($)
Repayment ($)
1
750.00
5,000.00
5,750.00
479.17
2
750.00
5,000.00
5,750.00
479.17
3
750.00
5,000.00
5,750.00
479.17
4
750.00
5,000.00
5,750.00
479.17
5
750.00
5,000.00
5,750.00
479.17

3,750.00

25,000.00

28,750.00

Alternatively, if you paid interest on what you owed the bank


Annual
Owed to
Interest
repayment
Annual
bank ($)
payable ($) on principal ($)
Repayment ($)
25,000.00
750.00
5,000.00
5,750.00
20,000.00
600.00
5,000.00
5,600.00
15,000.00
450.00
5,000.00
5,450.00
10,000.00
300.00
5,000.00
5,300.00
5,000.00
150.00
5,000.00
5,150.00

cumulative interest:

2250
9.00%

25,000.00

money owed:
Actual Interest Rate you are paying
Interest
Interest Rate
Principal
paid per
on what is
unpaid ($)
year ($)
not paid (%)
25,000.00
750.00
3.00%
20,000.00
750.00
3.75%
15,000.00
750.00
5.00%
10,000.00
750.00
7.50%
5,000.00
750.00
15.00%

27,250.00

Monthly
Repayment ($)
479.17
466.67
454.17
441.67
429.17

You can download this file from http://www.drpetersnew


All rights reserved. Copyright Peter Achutha, 2009, M
You are licensed to use this file and redistribute this file
do not remove this license message and copyright mes
This calculator is for general information only. Please co
- Dr. Peter Achutha, (20 June 2011)
House Price
Down payment
House loan principal
interest rate per year
monthly interest rate
House loan period (years)
House loan period (months)

$
$
$

The calculations descr

Total

Year Month
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
5
5
5
6
6
6
6
6

18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

6
6
6
6
6
6
6
7
7
7
7
7
7
7
7
7
7
7
7
8
8
8
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
9
9
10
10
10
10
10

66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113

10
10
10
10
10
10
10
11
11
11
11
11
11
11
11
11
11
11
11
12
12
12
12
12
12
12
12
12
12
12
12
13
13
13
13
13
13
13
13
13
13
13
13
14
14
14
14
14

114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161

14
14
14
14
14
14
14
15
15
15
15
15
15
15
15
15
15
15
15
16
16
16
16
16
16
16
16
16
16
16
16
17
17
17
17
17
17
17
17
17
17
17
17
18
18
18
18
18

162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209

18
18
18
18
18
18
18
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
21
21
21
21
21
21
21
21
21
21
21
21
22
22
22
22
22

210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257

22
22
22
22
22
22
22
23
23
23
23
23
23
23
23
23
23
23
23
24
24
24
24
24
24
24
24
24
24
24
24
25
25
25
25
25
25
25
25
25
25
25
25
26
26
26
26
26

258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305

26
26
26
26
26
26
26
27
27
27
27
27
27
27
27
27
27
27
27
28
28
28
28
28
28
28
28
28
28
28
28
29
29
29
29
29
29
29
29
29
29
29
29
30
30
30
30
30

306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353

30
30
30
30
30
30
30
31
31
31
31
31
31
31
31
31
31
31
31
32
32
32
32
32
32
32
32
32
32
32
32
33
33
33
33
33
33
33
33
33
33
33
33
34
34
34
34
34

354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401

34
34
34
34
34
34
34
35
35
35
35
35
35
35
35
35
35
35
35

402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420

p://www.drpetersnews.com/downloads.html and my other blog is at http://bachutha.com


ter Achutha, 2009, Malaysia
d redistribute this file provided you
e and copyright message.
mation only. Please contact your bank for actual figures

290,329.00
29,000.00
261,329.00
4.45%
0.37%
35 years
420 months

<-<-<-<-<-<-<--

you can change this figure, the proposed purchase price of th


you can change this figure
the actual loan amount to be applied for
you can change this figure
calculated from the annual interest rate
you can change this figure. This spreadsheet can handle loan
calculated from the loan period in years

he calculations described here are based upon an overdraft type of facility.

Total
Principal as a
principal ($)
% of house price
233,951.68
80.58%

Total
Interest ($)
201,710.21

Overdraft Facility Based Calculation


Monthly
End of
Balance
Monthly
principal
month
to be
interest
repayment ($)
paid ($)
paid ($)
payment ($)
622.21
622.21
260,706.79
969.10
622.21
1,244.42
260,084.58
966.79
622.21
1,866.64
259,462.36
964.48
622.21
2,488.85
258,840.15
962.17
622.21
3,111.06
258,217.94
959.87
622.21
3,733.27
257,595.73
957.56
622.21
4,355.48
256,973.52
955.25
622.21
4,977.70
256,351.30
952.94
622.21
5,599.91
255,729.09
950.64
622.21
6,222.12
255,106.88
948.33
622.21
6,844.33
254,484.67
946.02
622.21
7,466.54
253,862.46
943.71
622.21
8,088.75
253,240.25
941.41
622.21
8,710.97
252,618.03
939.10
622.21
9,333.18
251,995.82
936.79
622.21
9,955.39
251,373.61
934.48
622.21
10,577.60
250,751.40
932.18

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

11,199.81
11,822.03
12,444.24
13,066.45
13,688.66
14,310.87
14,933.09
15,555.30
16,177.51
16,799.72
17,421.93
18,044.15
18,666.36
19,288.57
19,910.78
20,532.99
21,155.20
21,777.42
22,399.63
23,021.84
23,644.05
24,266.26
24,888.48
25,510.69
26,132.90
26,755.11
27,377.32
27,999.54
28,621.75
29,243.96
29,866.17
30,488.38
31,110.60
31,732.81
32,355.02
32,977.23
33,599.44
34,221.65
34,843.87
35,466.08
36,088.29
36,710.50
37,332.71
37,954.93
38,577.14
39,199.35
39,821.56
40,443.77

250,129.19
249,506.97
248,884.76
248,262.55
247,640.34
247,018.13
246,395.91
245,773.70
245,151.49
244,529.28
243,907.07
243,284.85
242,662.64
242,040.43
241,418.22
240,796.01
240,173.80
239,551.58
238,929.37
238,307.16
237,684.95
237,062.74
236,440.52
235,818.31
235,196.10
234,573.89
233,951.68
233,329.46
232,707.25
232,085.04
231,462.83
230,840.62
230,218.40
229,596.19
228,973.98
228,351.77
227,729.56
227,107.35
226,485.13
225,862.92
225,240.71
224,618.50
223,996.29
223,374.07
222,751.86
222,129.65
221,507.44
220,885.23

929.87
927.56
925.26
922.95
920.64
918.33
916.03
913.72
911.41
909.10
906.80
904.49
902.18
899.87
897.57
895.26
892.95
890.64
888.34
886.03
883.72
881.42
879.11
876.80
874.49
872.19
869.88
867.57
865.26
862.96
860.65
858.34
856.03
853.73
851.42
849.11
846.80
844.50
842.19
839.88
837.58
835.27
832.96
830.65
828.35
826.04
823.73
821.42

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

41,065.99
41,688.20
42,310.41
42,932.62
43,554.83
44,177.05
44,799.26
45,421.47
46,043.68
46,665.89
47,288.10
47,910.32
48,532.53
49,154.74
49,776.95
50,399.16
51,021.38
51,643.59
52,265.80
52,888.01
53,510.22
54,132.44
54,754.65
55,376.86
55,999.07
56,621.28
57,243.50
57,865.71
58,487.92
59,110.13
59,732.34
60,354.55
60,976.77
61,598.98
62,221.19
62,843.40
63,465.61
64,087.83
64,710.04
65,332.25
65,954.46
66,576.67
67,198.89
67,821.10
68,443.31
69,065.52
69,687.73
70,309.95

220,263.01
219,640.80
219,018.59
218,396.38
217,774.17
217,151.95
216,529.74
215,907.53
215,285.32
214,663.11
214,040.90
213,418.68
212,796.47
212,174.26
211,552.05
210,929.84
210,307.62
209,685.41
209,063.20
208,440.99
207,818.78
207,196.56
206,574.35
205,952.14
205,329.93
204,707.72
204,085.50
203,463.29
202,841.08
202,218.87
201,596.66
200,974.45
200,352.23
199,730.02
199,107.81
198,485.60
197,863.39
197,241.17
196,618.96
195,996.75
195,374.54
194,752.33
194,130.11
193,507.90
192,885.69
192,263.48
191,641.27
191,019.05

819.12
816.81
814.50
812.19
809.89
807.58
805.27
802.96
800.66
798.35
796.04
793.73
791.43
789.12
786.81
784.51
782.20
779.89
777.58
775.28
772.97
770.66
768.35
766.05
763.74
761.43
759.12
756.82
754.51
752.20
749.89
747.59
745.28
742.97
740.67
738.36
736.05
733.74
731.44
729.13
726.82
724.51
722.21
719.90
717.59
715.28
712.98
710.67

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

70,932.16
71,554.37
72,176.58
72,798.79
73,421.00
74,043.22
74,665.43
75,287.64
75,909.85
76,532.06
77,154.28
77,776.49
78,398.70
79,020.91
79,643.12
80,265.34
80,887.55
81,509.76
82,131.97
82,754.18
83,376.40
83,998.61
84,620.82
85,243.03
85,865.24
86,487.45
87,109.67
87,731.88
88,354.09
88,976.30
89,598.51
90,220.73
90,842.94
91,465.15
92,087.36
92,709.57
93,331.79
93,954.00
94,576.21
95,198.42
95,820.63
96,442.85
97,065.06
97,687.27
98,309.48
98,931.69
99,553.90
100,176.12

190,396.84
189,774.63
189,152.42
188,530.21
187,908.00
187,285.78
186,663.57
186,041.36
185,419.15
184,796.94
184,174.72
183,552.51
182,930.30
182,308.09
181,685.88
181,063.66
180,441.45
179,819.24
179,197.03
178,574.82
177,952.60
177,330.39
176,708.18
176,085.97
175,463.76
174,841.55
174,219.33
173,597.12
172,974.91
172,352.70
171,730.49
171,108.27
170,486.06
169,863.85
169,241.64
168,619.43
167,997.21
167,375.00
166,752.79
166,130.58
165,508.37
164,886.15
164,263.94
163,641.73
163,019.52
162,397.31
161,775.10
161,152.88

708.36
706.05
703.75
701.44
699.13
696.83
694.52
692.21
689.90
687.60
685.29
682.98
680.67
678.37
676.06
673.75
671.44
669.14
666.83
664.52
662.21
659.91
657.60
655.29
652.99
650.68
648.37
646.06
643.76
641.45
639.14
636.83
634.53
632.22
629.91
627.60
625.30
622.99
620.68
618.37
616.07
613.76
611.45
609.15
606.84
604.53
602.22
599.92

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

100,798.33
101,420.54
102,042.75
102,664.96
103,287.18
103,909.39
104,531.60
105,153.81
105,776.02
106,398.24
107,020.45
107,642.66
108,264.87
108,887.08
109,509.30
110,131.51
110,753.72
111,375.93
111,998.14
112,620.35
113,242.57
113,864.78
114,486.99
115,109.20
115,731.41
116,353.63
116,975.84
117,598.05
118,220.26
118,842.47
119,464.69
120,086.90
120,709.11
121,331.32
121,953.53
122,575.75
123,197.96
123,820.17
124,442.38
125,064.59
125,686.80
126,309.02
126,931.23
127,553.44
128,175.65
128,797.86
129,420.08
130,042.29

160,530.67
159,908.46
159,286.25
158,664.04
158,041.82
157,419.61
156,797.40
156,175.19
155,552.98
154,930.76
154,308.55
153,686.34
153,064.13
152,441.92
151,819.70
151,197.49
150,575.28
149,953.07
149,330.86
148,708.65
148,086.43
147,464.22
146,842.01
146,219.80
145,597.59
144,975.37
144,353.16
143,730.95
143,108.74
142,486.53
141,864.31
141,242.10
140,619.89
139,997.68
139,375.47
138,753.25
138,131.04
137,508.83
136,886.62
136,264.41
135,642.20
135,019.98
134,397.77
133,775.56
133,153.35
132,531.14
131,908.92
131,286.71

597.61
595.30
592.99
590.69
588.38
586.07
583.76
581.46
579.15
576.84
574.53
572.23
569.92
567.61
565.31
563.00
560.69
558.38
556.08
553.77
551.46
549.15
546.85
544.54
542.23
539.92
537.62
535.31
533.00
530.69
528.39
526.08
523.77
521.47
519.16
516.85
514.54
512.24
509.93
507.62
505.31
503.01
500.70
498.39
496.08
493.78
491.47
489.16

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

130,664.50
131,286.71
131,908.92
132,531.14
133,153.35
133,775.56
134,397.77
135,019.98
135,642.20
136,264.41
136,886.62
137,508.83
138,131.04
138,753.25
139,375.47
139,997.68
140,619.89
141,242.10
141,864.31
142,486.53
143,108.74
143,730.95
144,353.16
144,975.37
145,597.59
146,219.80
146,842.01
147,464.22
148,086.43
148,708.65
149,330.86
149,953.07
150,575.28
151,197.49
151,819.70
152,441.92
153,064.13
153,686.34
154,308.55
154,930.76
155,552.98
156,175.19
156,797.40
157,419.61
158,041.82
158,664.04
159,286.25
159,908.46

130,664.50
130,042.29
129,420.08
128,797.86
128,175.65
127,553.44
126,931.23
126,309.02
125,686.80
125,064.59
124,442.38
123,820.17
123,197.96
122,575.75
121,953.53
121,331.32
120,709.11
120,086.90
119,464.69
118,842.47
118,220.26
117,598.05
116,975.84
116,353.63
115,731.41
115,109.20
114,486.99
113,864.78
113,242.57
112,620.35
111,998.14
111,375.93
110,753.72
110,131.51
109,509.30
108,887.08
108,264.87
107,642.66
107,020.45
106,398.24
105,776.02
105,153.81
104,531.60
103,909.39
103,287.18
102,664.96
102,042.75
101,420.54

486.85
484.55
482.24
479.93
477.63
475.32
473.01
470.70
468.40
466.09
463.78
461.47
459.17
456.86
454.55
452.24
449.94
447.63
445.32
443.01
440.71
438.40
436.09
433.79
431.48
429.17
426.86
424.56
422.25
419.94
417.63
415.33
413.02
410.71
408.40
406.10
403.79
401.48
399.17
396.87
394.56
392.25
389.95
387.64
385.33
383.02
380.72
378.41

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

160,530.67
161,152.88
161,775.10
162,397.31
163,019.52
163,641.73
164,263.94
164,886.15
165,508.37
166,130.58
166,752.79
167,375.00
167,997.21
168,619.43
169,241.64
169,863.85
170,486.06
171,108.27
171,730.49
172,352.70
172,974.91
173,597.12
174,219.33
174,841.55
175,463.76
176,085.97
176,708.18
177,330.39
177,952.60
178,574.82
179,197.03
179,819.24
180,441.45
181,063.66
181,685.88
182,308.09
182,930.30
183,552.51
184,174.72
184,796.94
185,419.15
186,041.36
186,663.57
187,285.78
187,908.00
188,530.21
189,152.42
189,774.63

100,798.33
100,176.12
99,553.90
98,931.69
98,309.48
97,687.27
97,065.06
96,442.85
95,820.63
95,198.42
94,576.21
93,954.00
93,331.79
92,709.57
92,087.36
91,465.15
90,842.94
90,220.73
89,598.51
88,976.30
88,354.09
87,731.88
87,109.67
86,487.45
85,865.24
85,243.03
84,620.82
83,998.61
83,376.40
82,754.18
82,131.97
81,509.76
80,887.55
80,265.34
79,643.12
79,020.91
78,398.70
77,776.49
77,154.28
76,532.06
75,909.85
75,287.64
74,665.43
74,043.22
73,421.00
72,798.79
72,176.58
71,554.37

376.10
373.79
371.49
369.18
366.87
364.56
362.26
359.95
357.64
355.33
353.03
350.72
348.41
346.11
343.80
341.49
339.18
336.88
334.57
332.26
329.95
327.65
325.34
323.03
320.72
318.42
316.11
313.80
311.49
309.19
306.88
304.57
302.27
299.96
297.65
295.34
293.04
290.73
288.42
286.11
283.81
281.50
279.19
276.88
274.58
272.27
269.96
267.65

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

190,396.84
191,019.05
191,641.27
192,263.48
192,885.69
193,507.90
194,130.11
194,752.33
195,374.54
195,996.75
196,618.96
197,241.17
197,863.39
198,485.60
199,107.81
199,730.02
200,352.23
200,974.45
201,596.66
202,218.87
202,841.08
203,463.29
204,085.50
204,707.72
205,329.93
205,952.14
206,574.35
207,196.56
207,818.78
208,440.99
209,063.20
209,685.41
210,307.62
210,929.84
211,552.05
212,174.26
212,796.47
213,418.68
214,040.90
214,663.11
215,285.32
215,907.53
216,529.74
217,151.95
217,774.17
218,396.38
219,018.59
219,640.80

70,932.16
70,309.95
69,687.73
69,065.52
68,443.31
67,821.10
67,198.89
66,576.67
65,954.46
65,332.25
64,710.04
64,087.83
63,465.61
62,843.40
62,221.19
61,598.98
60,976.77
60,354.55
59,732.34
59,110.13
58,487.92
57,865.71
57,243.50
56,621.28
55,999.07
55,376.86
54,754.65
54,132.44
53,510.22
52,888.01
52,265.80
51,643.59
51,021.38
50,399.16
49,776.95
49,154.74
48,532.53
47,910.32
47,288.10
46,665.89
46,043.68
45,421.47
44,799.26
44,177.05
43,554.83
42,932.62
42,310.41
41,688.20

265.35
263.04
260.73
258.43
256.12
253.81
251.50
249.20
246.89
244.58
242.27
239.97
237.66
235.35
233.04
230.74
228.43
226.12
223.81
221.51
219.20
216.89
214.59
212.28
209.97
207.66
205.36
203.05
200.74
198.43
196.13
193.82
191.51
189.20
186.90
184.59
182.28
179.97
177.67
175.36
173.05
170.75
168.44
166.13
163.82
161.52
159.21
156.90

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

220,263.01
220,885.23
221,507.44
222,129.65
222,751.86
223,374.07
223,996.29
224,618.50
225,240.71
225,862.92
226,485.13
227,107.35
227,729.56
228,351.77
228,973.98
229,596.19
230,218.40
230,840.62
231,462.83
232,085.04
232,707.25
233,329.46
233,951.68
234,573.89
235,196.10
235,818.31
236,440.52
237,062.74
237,684.95
238,307.16
238,929.37
239,551.58
240,173.80
240,796.01
241,418.22
242,040.43
242,662.64
243,284.85
243,907.07
244,529.28
245,151.49
245,773.70
246,395.91
247,018.13
247,640.34
248,262.55
248,884.76
249,506.97

41,065.99
40,443.77
39,821.56
39,199.35
38,577.14
37,954.93
37,332.71
36,710.50
36,088.29
35,466.08
34,843.87
34,221.65
33,599.44
32,977.23
32,355.02
31,732.81
31,110.60
30,488.38
29,866.17
29,243.96
28,621.75
27,999.54
27,377.32
26,755.11
26,132.90
25,510.69
24,888.48
24,266.26
23,644.05
23,021.84
22,399.63
21,777.42
21,155.20
20,532.99
19,910.78
19,288.57
18,666.36
18,044.15
17,421.93
16,799.72
16,177.51
15,555.30
14,933.09
14,310.87
13,688.66
13,066.45
12,444.24
11,822.03

154.59
152.29
149.98
147.67
145.36
143.06
140.75
138.44
136.13
133.83
131.52
129.21
126.91
124.60
122.29
119.98
117.68
115.37
113.06
110.75
108.45
106.14
103.83
101.52
99.22
96.91
94.60
92.29
89.99
87.68
85.37
83.07
80.76
78.45
76.14
73.84
71.53
69.22
66.91
64.61
62.30
59.99
57.68
55.38
53.07
50.76
48.45
46.15

622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21
622.21

250,129.19
250,751.40
251,373.61
251,995.82
252,618.03
253,240.25
253,862.46
254,484.67
255,106.88
255,729.09
256,351.30
256,973.52
257,595.73
258,217.94
258,840.15
259,462.36
260,084.58
260,706.79
261,329.00

11,199.81
10,577.60
9,955.39
9,333.18
8,710.97
8,088.75
7,466.54
6,844.33
6,222.12
5,599.91
4,977.70
4,355.48
3,733.27
3,111.06
2,488.85
1,866.64
1,244.42
622.21
0.00

43.84
41.53
39.23
36.92
34.61
32.30
30.00
27.69
25.38
23.07
20.77
18.46
16.15
13.84
11.54
9.23
6.92
4.61
2.31

tp://bachutha.com

Notes:

gure, the proposed purchase price of the house

nt to be applied for

nnual interest rate


gure. This spreadsheet can handle loan periods up to 31 years
an period in years

Interest as a
% of house price
69.48%

Calculation
Cumulative
Interest
Payment ($)

Monthly
payment
to bank ($)
969.10
1,591.31
1,935.88
1,589.00
2,900.36
1,586.69
3,862.54
1,584.38
4,822.40
1,582.08
5,779.96
1,579.77
6,735.21
1,577.46
7,688.15
1,575.16
8,638.79
1,572.85
9,587.12
1,570.54
10,533.14
1,568.23
11,476.85
1,565.93
12,418.26
1,563.62
13,357.36
1,561.31
14,294.15
1,559.00
15,228.64
1,556.70
16,160.81
1,554.39

1) When you borrow money from


Hence the Overdraft Type of inte
2) Linearisation is what the bank
Otherwise you would see a large
period and a smaller monthly pa
3) The bank officer will tell you, i
After which you begin making pa
4) This leads to "Excess Interest
may be, 10 years down the road
5) the excess interest payment s
6) So what happens if you sell yo
Will the bank refund the excess i

7) if the interest rate is too high,


you can run into compound inter
8) do you really think it is worth
9) The bank has a formula to do
with bank loan calculations and I
house before the completion of t

Linearised
Total paid
Monthly
to bank
payment
435,661.89
1,037.29

Linearised
Cumulative
payment
to bank
1,037.29
2,074.58
3,111.87
4,149.16
5,186.45
6,223.74
7,261.03
8,298.32
9,335.61
10,372.90
11,410.19
12,447.48
13,484.77
14,522.06
15,559.35
16,596.64
17,633.93

17,090.68
18,018.25
18,943.50
19,866.45
20,787.09
21,705.42
22,621.45
23,535.17
24,446.58
25,355.68
26,262.48
27,166.96
28,069.15
28,969.02
29,866.59
30,761.85
31,654.80
32,545.44
33,433.78
34,319.81
35,203.53
36,084.95
36,964.05
37,840.85
38,715.35
39,587.53
40,457.41
41,324.98
42,190.24
43,053.20
43,913.85
44,772.19
45,628.22
46,481.95
47,333.37
48,182.48
49,029.29
49,873.78
50,715.97
51,555.86
52,393.43
53,228.70
54,061.66
54,892.31
55,720.66
56,546.70
57,370.43
58,191.85

1,552.08
1,549.77
1,547.47
1,545.16
1,542.85
1,540.54
1,538.24
1,535.93
1,533.62
1,531.32
1,529.01
1,526.70
1,524.39
1,522.09
1,519.78
1,517.47
1,515.16
1,512.86
1,510.55
1,508.24
1,505.93
1,503.63
1,501.32
1,499.01
1,496.70
1,494.40
1,492.09
1,489.78
1,487.48
1,485.17
1,482.86
1,480.55
1,478.25
1,475.94
1,473.63
1,471.32
1,469.02
1,466.71
1,464.40
1,462.09
1,459.79
1,457.48
1,455.17
1,452.86
1,450.56
1,448.25
1,445.94
1,443.64

18,671.22
19,708.51
20,745.80
21,783.09
22,820.38
23,857.67
24,894.96
25,932.26
26,969.55
28,006.84
29,044.13
30,081.42
31,118.71
32,156.00
33,193.29
34,230.58
35,267.87
36,305.16
37,342.45
38,379.74
39,417.03
40,454.32
41,491.61
42,528.90
43,566.19
44,603.48
45,640.77
46,678.06
47,715.35
48,752.64
49,789.93
50,827.22
51,864.51
52,901.80
53,939.09
54,976.38
56,013.67
57,050.96
58,088.25
59,125.54
60,162.83
61,200.12
62,237.41
63,274.70
64,311.99
65,349.28
66,386.57
67,423.86

59,010.97
59,827.77
60,642.28
61,454.47
62,264.36
63,071.94
63,877.21
64,680.17
65,480.83
66,279.18
67,075.22
67,868.96
68,660.38
69,449.50
70,236.32
71,020.82
71,803.02
72,582.91
73,360.49
74,135.77
74,908.74
75,679.40
76,447.75
77,213.80
77,977.54
78,738.97
79,498.10
80,254.91
81,009.42
81,761.63
82,511.52
83,259.11
84,004.39
84,747.36
85,488.03
86,226.39
86,962.44
87,696.18
88,427.62
89,156.74
89,883.57
90,608.08
91,330.29
92,050.18
92,767.78
93,483.06
94,196.04
94,906.71

1,441.33
1,439.02
1,436.71
1,434.41
1,432.10
1,429.79
1,427.48
1,425.18
1,422.87
1,420.56
1,418.25
1,415.95
1,413.64
1,411.33
1,409.02
1,406.72
1,404.41
1,402.10
1,399.80
1,397.49
1,395.18
1,392.87
1,390.57
1,388.26
1,385.95
1,383.64
1,381.34
1,379.03
1,376.72
1,374.41
1,372.11
1,369.80
1,367.49
1,365.18
1,362.88
1,360.57
1,358.26
1,355.96
1,353.65
1,351.34
1,349.03
1,346.73
1,344.42
1,342.11
1,339.80
1,337.50
1,335.19
1,332.88

68,461.15
69,498.44
70,535.73
71,573.02
72,610.31
73,647.60
74,684.89
75,722.19
76,759.48
77,796.77
78,834.06
79,871.35
80,908.64
81,945.93
82,983.22
84,020.51
85,057.80
86,095.09
87,132.38
88,169.67
89,206.96
90,244.25
91,281.54
92,318.83
93,356.12
94,393.41
95,430.70
96,467.99
97,505.28
98,542.57
99,579.86
100,617.15
101,654.44
102,691.73
103,729.02
104,766.31
105,803.60
106,840.89
107,878.18
108,915.47
109,952.76
110,990.05
112,027.34
113,064.63
114,101.92
115,139.21
116,176.50
117,213.79

95,615.07
96,321.13
97,024.87
97,726.31
98,425.45
99,122.27
99,816.79
100,509.00
101,198.90
101,886.50
102,571.79
103,254.77
103,935.44
104,613.81
105,289.87
105,963.62
106,635.07
107,304.20
107,971.03
108,635.55
109,297.77
109,957.68
110,615.28
111,270.57
111,923.56
112,574.23
113,222.60
113,868.67
114,512.42
115,153.87
115,793.01
116,429.85
117,064.37
117,696.59
118,326.50
118,954.11
119,579.41
120,202.40
120,823.08
121,441.45
122,057.52
122,671.28
123,282.73
123,891.88
124,498.72
125,103.25
125,705.47
126,305.39

1,330.57
1,328.27
1,325.96
1,323.65
1,321.34
1,319.04
1,316.73
1,314.42
1,312.12
1,309.81
1,307.50
1,305.19
1,302.89
1,300.58
1,298.27
1,295.96
1,293.66
1,291.35
1,289.04
1,286.73
1,284.43
1,282.12
1,279.81
1,277.50
1,275.20
1,272.89
1,270.58
1,268.28
1,265.97
1,263.66
1,261.35
1,259.05
1,256.74
1,254.43
1,252.12
1,249.82
1,247.51
1,245.20
1,242.89
1,240.59
1,238.28
1,235.97
1,233.66
1,231.36
1,229.05
1,226.74
1,224.44
1,222.13

118,251.08
119,288.37
120,325.66
121,362.95
122,400.24
123,437.53
124,474.82
125,512.12
126,549.41
127,586.70
128,623.99
129,661.28
130,698.57
131,735.86
132,773.15
133,810.44
134,847.73
135,885.02
136,922.31
137,959.60
138,996.89
140,034.18
141,071.47
142,108.76
143,146.05
144,183.34
145,220.63
146,257.92
147,295.21
148,332.50
149,369.79
150,407.08
151,444.37
152,481.66
153,518.95
154,556.24
155,593.53
156,630.82
157,668.11
158,705.40
159,742.69
160,779.98
161,817.27
162,854.56
163,891.85
164,929.14
165,966.43
167,003.72

126,903.00
127,498.30
128,091.29
128,681.98
129,270.36
129,856.43
130,440.19
131,021.65
131,600.80
132,177.64
132,752.18
133,324.40
133,894.32
134,461.94
135,027.24
135,590.24
136,150.93
136,709.31
137,265.39
137,819.16
138,370.62
138,919.77
139,466.62
140,011.16
140,553.39
141,093.32
141,630.93
142,166.24
142,699.24
143,229.94
143,758.33
144,284.41
144,808.18
145,329.65
145,848.80
146,365.65
146,880.20
147,392.43
147,902.36
148,409.98
148,915.30
149,418.30
149,919.00
150,417.39
150,913.48
151,407.26
151,898.73
152,387.89

1,219.82
1,217.51
1,215.21
1,212.90
1,210.59
1,208.28
1,205.98
1,203.67
1,201.36
1,199.05
1,196.75
1,194.44
1,192.13
1,189.82
1,187.52
1,185.21
1,182.90
1,180.60
1,178.29
1,175.98
1,173.67
1,171.37
1,169.06
1,166.75
1,164.44
1,162.14
1,159.83
1,157.52
1,155.21
1,152.91
1,150.60
1,148.29
1,145.98
1,143.68
1,141.37
1,139.06
1,136.76
1,134.45
1,132.14
1,129.83
1,127.53
1,125.22
1,122.91
1,120.60
1,118.30
1,115.99
1,113.68
1,111.37

168,041.01
169,078.30
170,115.59
171,152.88
172,190.17
173,227.46
174,264.75
175,302.05
176,339.34
177,376.63
178,413.92
179,451.21
180,488.50
181,525.79
182,563.08
183,600.37
184,637.66
185,674.95
186,712.24
187,749.53
188,786.82
189,824.11
190,861.40
191,898.69
192,935.98
193,973.27
195,010.56
196,047.85
197,085.14
198,122.43
199,159.72
200,197.01
201,234.30
202,271.59
203,308.88
204,346.17
205,383.46
206,420.75
207,458.04
208,495.33
209,532.62
210,569.91
211,607.20
212,644.49
213,681.78
214,719.07
215,756.36
216,793.65

152,874.74
153,359.29
153,841.53
154,321.46
154,799.09
155,274.41
155,747.42
156,218.12
156,686.52
157,152.61
157,616.39
158,077.86
158,537.03
158,993.89
159,448.44
159,900.68
160,350.62
160,798.25
161,243.57
161,686.59
162,127.29
162,565.69
163,001.79
163,435.57
163,867.05
164,296.22
164,723.08
165,147.64
165,569.89
165,989.83
166,407.46
166,822.79
167,235.81
167,646.52
168,054.92
168,461.02
168,864.81
169,266.29
169,665.47
170,062.34
170,456.90
170,849.15
171,239.09
171,626.73
172,012.06
172,395.09
172,775.80
173,154.21

1,109.07
1,106.76
1,104.45
1,102.14
1,099.84
1,097.53
1,095.22
1,092.92
1,090.61
1,088.30
1,085.99
1,083.69
1,081.38
1,079.07
1,076.76
1,074.46
1,072.15
1,069.84
1,067.53
1,065.23
1,062.92
1,060.61
1,058.30
1,056.00
1,053.69
1,051.38
1,049.08
1,046.77
1,044.46
1,042.15
1,039.85
1,037.54
1,035.23
1,032.92
1,030.62
1,028.31
1,026.00
1,023.69
1,021.39
1,019.08
1,016.77
1,014.46
1,012.16
1,009.85
1,007.54
1,005.24
1,002.93
1,000.62

217,830.94
218,868.23
219,905.52
220,942.81
221,980.10
223,017.39
224,054.68
225,091.97
226,129.27
227,166.56
228,203.85
229,241.14
230,278.43
231,315.72
232,353.01
233,390.30
234,427.59
235,464.88
236,502.17
237,539.46
238,576.75
239,614.04
240,651.33
241,688.62
242,725.91
243,763.20
244,800.49
245,837.78
246,875.07
247,912.36
248,949.65
249,986.94
251,024.23
252,061.52
253,098.81
254,136.10
255,173.39
256,210.68
257,247.97
258,285.26
259,322.55
260,359.84
261,397.13
262,434.42
263,471.71
264,509.00
265,546.29
266,583.58

173,530.31
173,904.11
174,275.59
174,644.77
175,011.64
175,376.21
175,738.46
176,098.41
176,456.06
176,811.39
177,164.42
177,515.14
177,863.55
178,209.66
178,553.45
178,894.94
179,234.13
179,571.00
179,905.57
180,237.83
180,567.79
180,895.43
181,220.77
181,543.80
181,864.53
182,182.95
182,499.06
182,812.86
183,124.35
183,433.54
183,740.42
184,044.99
184,347.26
184,647.22
184,944.87
185,240.21
185,533.25
185,823.97
186,112.40
186,398.51
186,682.32
186,963.81
187,243.01
187,519.89
187,794.47
188,066.74
188,336.70
188,604.35

998.31
996.01
993.70
991.39
989.08
986.78
984.47
982.16
979.85
977.55
975.24
972.93
970.62
968.32
966.01
963.70
961.40
959.09
956.78
954.47
952.17
949.86
947.55
945.24
942.94
940.63
938.32
936.01
933.71
931.40
929.09
926.78
924.48
922.17
919.86
917.56
915.25
912.94
910.63
908.33
906.02
903.71
901.40
899.10
896.79
894.48
892.17
889.87

267,620.87
268,658.16
269,695.45
270,732.74
271,770.03
272,807.32
273,844.61
274,881.90
275,919.20
276,956.49
277,993.78
279,031.07
280,068.36
281,105.65
282,142.94
283,180.23
284,217.52
285,254.81
286,292.10
287,329.39
288,366.68
289,403.97
290,441.26
291,478.55
292,515.84
293,553.13
294,590.42
295,627.71
296,665.00
297,702.29
298,739.58
299,776.87
300,814.16
301,851.45
302,888.74
303,926.03
304,963.32
306,000.61
307,037.90
308,075.19
309,112.48
310,149.77
311,187.06
312,224.35
313,261.64
314,298.93
315,336.22
316,373.51

188,869.70
189,132.74
189,393.47
189,651.90
189,908.02
190,161.83
190,413.33
190,662.53
190,909.42
191,154.00
191,396.27
191,636.24
191,873.90
192,109.25
192,342.29
192,573.03
192,801.46
193,027.58
193,251.40
193,472.90
193,692.10
193,909.00
194,123.58
194,335.86
194,545.83
194,753.49
194,958.85
195,161.90
195,362.64
195,561.07
195,757.20
195,951.02
196,142.53
196,331.73
196,518.63
196,703.22
196,885.50
197,065.48
197,243.14
197,418.50
197,591.56
197,762.30
197,930.74
198,096.87
198,260.69
198,422.21
198,581.42
198,738.32

887.56
885.25
882.94
880.64
878.33
876.02
873.72
871.41
869.10
866.79
864.49
862.18
859.87
857.56
855.26
852.95
850.64
848.33
846.03
843.72
841.41
839.10
836.80
834.49
832.18
829.88
827.57
825.26
822.95
820.65
818.34
816.03
813.72
811.42
809.11
806.80
804.49
802.19
799.88
797.57
795.26
792.96
790.65
788.34
786.04
783.73
781.42
779.11

317,410.80
318,448.09
319,485.38
320,522.67
321,559.96
322,597.25
323,634.54
324,671.83
325,709.13
326,746.42
327,783.71
328,821.00
329,858.29
330,895.58
331,932.87
332,970.16
334,007.45
335,044.74
336,082.03
337,119.32
338,156.61
339,193.90
340,231.19
341,268.48
342,305.77
343,343.06
344,380.35
345,417.64
346,454.93
347,492.22
348,529.51
349,566.80
350,604.09
351,641.38
352,678.67
353,715.96
354,753.25
355,790.54
356,827.83
357,865.12
358,902.41
359,939.70
360,976.99
362,014.28
363,051.57
364,088.86
365,126.15
366,163.44

198,892.91
199,045.20
199,195.18
199,342.85
199,488.21
199,631.27
199,772.02
199,910.46
200,046.60
200,180.43
200,311.95
200,441.16
200,568.06
200,692.66
200,814.95
200,934.93
201,052.61
201,167.98
201,281.04
201,391.79
201,500.24
201,606.38
201,710.21
201,811.74
201,910.95
202,007.86
202,102.46
202,194.76
202,284.75
202,372.43
202,457.80
202,540.86
202,621.62
202,700.07
202,776.22
202,850.05
202,921.58
202,990.80
203,057.71
203,122.32
203,184.62
203,244.61
203,302.30
203,357.67
203,410.74
203,461.50
203,509.96
203,556.11

776.81
774.50
772.19
769.88
767.58
765.27
762.96
760.65
758.35
756.04
753.73
751.42
749.12
746.81
744.50
742.20
739.89
737.58
735.27
732.97
730.66
728.35
726.04
723.74
721.43
719.12
716.81
714.51
712.20
709.89
707.58
705.28
702.97
700.66
698.36
696.05
693.74
691.43
689.13
686.82
684.51
682.20
679.90
677.59
675.28
672.97
670.67
668.36

367,200.73
368,238.02
369,275.31
370,312.60
371,349.89
372,387.18
373,424.47
374,461.76
375,499.05
376,536.35
377,573.64
378,610.93
379,648.22
380,685.51
381,722.80
382,760.09
383,797.38
384,834.67
385,871.96
386,909.25
387,946.54
388,983.83
390,021.12
391,058.41
392,095.70
393,132.99
394,170.28
395,207.57
396,244.86
397,282.15
398,319.44
399,356.73
400,394.02
401,431.31
402,468.60
403,505.89
404,543.18
405,580.47
406,617.76
407,655.05
408,692.34
409,729.63
410,766.92
411,804.21
412,841.50
413,878.79
414,916.08
415,953.37

203,599.95
203,641.48
203,680.70
203,717.62
203,752.23
203,784.54
203,814.53
203,842.22
203,867.60
203,890.67
203,911.44
203,929.90
203,946.05
203,959.90
203,971.43
203,980.66
203,987.58
203,992.20
203,994.51

666.05
663.74
661.44
659.13
656.82
654.52
652.21
649.90
647.59
645.29
642.98
640.67
638.36
636.06
633.75
631.44
629.13
626.83
624.52

416,990.66
418,027.95
419,065.24
420,102.53
421,139.82
422,177.11
423,214.40
424,251.69
425,288.98
426,326.28
427,363.57
428,400.86
429,438.15
430,475.44
431,512.73
432,550.02
433,587.31
434,624.60
435,661.89

en you borrow money from the bank you will be charged interest on the amount owing to the bank.
e the Overdraft Type of interest calculations. They have a formula to do this.
earisation is what the bank does to ensure that you pay a fixed amount every month.
wise you would see a large monthly payment figure at the beginning of the payment
and a smaller monthly payment figure towards the end of the payment period.
bank officer will tell you, if you probe him, that all interest is collected first.
which you begin making payments on your principle sum.
leads to "Excess Interest Payment" situation where you are paying interest today that should be paid,
be, 10 years down the road. They are collecting interest that is not due! That is you would have paid more tha
excess interest payment should go to contibuting to you principal repayment.
what happens if you sell your house before the completion of the loan period?
e bank refund the excess interest charges that will now not be under the bank's loan?

e interest rate is too high, eg 4% for 40 year loan, 8% for 30 year loan or 14% for 15 year loan, and higher,
n run into compound interest payments due to the linearisation
you really think it is worth taking very long term loans?
bank has a formula to do this calculation but I did it the long way to high light the problems
ank loan calculations and I ask you what did you pay the bank if you sold or foreclosed on your
before the completion of the loan payment period.

What the bank officer


said about deductions
Principal
Bank
Repayment
Collects
Begins after
Interest
Interest
upfront
paid
1,037.29 Interest
2,074.58 Interest
3,111.87 Interest
4,149.16 Interest
5,186.45 Interest
6,223.74 Interest
7,261.03 Interest
8,298.32 Interest
9,335.61 Interest
10,372.90 Interest
11,410.19 Interest
12,447.48 Interest
13,484.77 Interest
14,522.06 Interest
15,559.35 Interest
16,596.64 Interest
17,633.93 Interest

Excess Interest Payment to Ba


Excess
Interest
paid to
bank
68.20
138.70
211.51
286.62
364.05
443.78
525.82
610.17
696.82
785.78
877.05
970.63
1,066.51
1,164.70
1,265.20
1,368.01
1,473.12

18,671.22 Interest
19,708.51 Interest
20,745.80 Interest
21,783.09 Interest
22,820.38 Interest
23,857.67 Interest
24,894.96 Interest
25,932.26 Interest
26,969.55 Interest
28,006.84 Interest
29,044.13 Interest
30,081.42 Interest
31,118.71 Interest
32,156.00 Interest
33,193.29 Interest
34,230.58 Interest
35,267.87 Interest
36,305.16 Interest
37,342.45 Interest
38,379.74 Interest
39,417.03 Interest
40,454.32 Interest
41,491.61 Interest
42,528.90 Interest
43,566.19 Interest
44,603.48 Interest
45,640.77 Interest
46,678.06 Interest
47,715.35 Interest
48,752.64 Interest
49,789.93 Interest
50,827.22 Interest
51,864.51 Interest
52,901.80 Interest
53,939.09 Interest
54,976.38 Interest
56,013.67 Interest
57,050.96 Interest
58,088.25 Interest
59,125.54 Interest
60,162.83 Interest
61,200.12 Interest
62,237.41 Interest
63,274.70 Interest
64,311.99 Interest
65,349.28 Interest
66,386.57 Interest
67,423.86 Interest

1,580.54
1,690.27
1,802.30
1,916.65
2,033.30
2,152.25
2,273.52
2,397.09
2,522.97
2,651.16
2,781.65
2,914.45
3,049.56
3,186.98
3,326.70
3,468.73
3,613.07
3,759.72
3,908.67
4,059.93
4,213.50
4,369.37
4,527.55
4,688.04
4,850.84
5,015.95
5,183.36
5,353.08
5,525.10
5,699.44
5,876.08
6,055.03
6,236.29
6,419.85
6,605.72
6,793.90
6,984.38
7,177.18
7,372.28
7,569.69
7,769.40
7,971.42
8,175.75
8,382.39
8,591.34
8,802.59
9,016.15
9,232.01

68,461.15 Interest
69,498.44 Interest
70,535.73 Interest
71,573.02 Interest
72,610.31 Interest
73,647.60 Interest
74,684.89 Interest
75,722.19 Interest
76,759.48 Interest
77,796.77 Interest
78,834.06 Interest
79,871.35 Interest
80,908.64 Interest
81,945.93 Interest
82,983.22 Interest
84,020.51 Interest
85,057.80 Interest
86,095.09 Interest
87,132.38 Interest
88,169.67 Interest
89,206.96 Interest
90,244.25 Interest
91,281.54 Interest
92,318.83 Interest
93,356.12 Interest
94,393.41 Interest
95,430.70 Interest
96,467.99 Interest
97,505.28 Interest
98,542.57 Interest
99,579.86 Interest
100,617.15 Interest
101,654.44 Interest
102,691.73 Interest
103,729.02 Interest
104,766.31 Interest
105,803.60 Interest
106,840.89 Interest
107,878.18 Interest
108,915.47 Interest
109,952.76 Interest
110,990.05 Interest
112,027.34 Interest
113,064.63 Interest
114,101.92 Interest
115,139.21 Interest
116,176.50 Interest
117,213.79 Interest

9,450.19
9,670.67
9,893.46
10,118.55
10,345.96
10,575.67
10,807.69
11,042.01
11,278.65
11,517.59
11,758.83
12,002.39
12,248.25
12,496.42
12,746.90
12,999.68
13,254.78
13,512.18
13,771.88
14,033.90
14,298.22
14,564.85
14,833.78
15,105.03
15,378.58
15,654.44
15,932.60
16,213.08
16,495.86
16,780.94
17,068.34
17,358.04
17,650.05
17,944.37
18,240.99
18,539.93
18,841.17
19,144.71
19,450.57
19,758.73
20,069.20
20,381.97
20,697.06
21,014.45
21,334.15
21,656.15
21,980.47
22,307.09

118,251.08 Interest
119,288.37 Interest
120,325.66 Interest
121,362.95 Interest
122,400.24 Interest
123,437.53 Interest
124,474.82 Interest
125,512.12 Interest
126,549.41 Interest
127,586.70 Interest
128,623.99 Interest
129,661.28 Interest
130,698.57 Interest
131,735.86 Interest
132,773.15 Interest
133,810.44 Interest
134,847.73 Interest
135,885.02 Interest
136,922.31 Interest
137,959.60 Interest
138,996.89 Interest
140,034.18 Interest
141,071.47 Interest
142,108.76 Interest
143,146.05 Interest
144,183.34 Interest
145,220.63 Interest
146,257.92 Interest
147,295.21 Interest
148,332.50 Interest
149,369.79 Interest
150,407.08 Interest
151,444.37 Interest
152,481.66 Interest
153,518.95 Interest
154,556.24 Interest
155,593.53 Interest
156,630.82 Interest
157,668.11 Interest
158,705.40 Interest
159,742.69 Interest
160,779.98 Interest
161,817.27 Interest
162,854.56 Interest
163,891.85 Interest
164,929.14 Interest
165,966.43 Interest
167,003.72 Interest

22,636.01
22,967.25
23,300.79
23,636.64
23,974.80
24,315.26
24,658.04
25,003.12
25,350.50
25,700.20
26,052.20
26,406.51
26,763.12
27,122.05
27,483.28
27,846.82
28,212.66
28,580.81
28,951.28
29,324.04
29,699.12
30,076.50
30,456.19
30,838.19
31,222.49
31,609.11
31,998.02
32,389.25
32,782.79
33,178.63
33,576.78
33,977.23
34,380.00
34,785.07
35,192.45
35,602.13
36,014.13
36,428.43
36,845.03
37,263.95
37,685.17
38,108.70
38,534.54
38,962.68
39,393.14
39,825.90
40,260.96
40,698.34

168,041.01 Interest
169,078.30 Interest
170,115.59 Interest
171,152.88 Interest
172,190.17 Interest
173,227.46 Interest
174,264.75 Interest
175,302.05 Interest
176,339.34 Interest
177,376.63 Interest
178,413.92 Interest
179,451.21 Interest
180,488.50 Interest
181,525.79 Interest
182,563.08 Interest
183,600.37 Interest
184,637.66 Interest
185,674.95 Interest
186,712.24 Interest
187,749.53 Interest
188,786.82 Interest
189,824.11 Interest
190,861.40 Interest
191,898.69 Interest
192,935.98 Interest
193,973.27 Interest
195,010.56 Interest
196,047.85 Interest
197,085.14 Interest
198,122.43 Interest
199,159.72 Interest
200,197.01 Interest
201,234.30 Interest
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

41,138.02
41,580.01
42,024.30
42,470.91
42,919.82
43,371.04
43,824.56
44,280.40
44,738.54
45,198.98
45,661.74
46,126.80
46,594.17
47,063.85
47,535.83
48,010.13
48,486.73
48,965.63
49,446.85
49,930.37
50,416.20
50,904.33
51,394.78
51,887.53
52,382.59
52,879.95
53,379.63
53,881.61
54,385.89
54,892.49
55,401.39
55,912.60
56,426.12

Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal
Principal

nt owing to the bank.

oday that should be paid,


s you would have paid more than for an Overdraft facility

% for 15 year loan, and higher,

t the problems
reclosed on your

ess Interest Payment to Bank


Equivalent Equivalent
Months of
Years of
Principal
Principal
Payment
Payment
0.11
0.01
0.22
0.02
0.34
0.03
0.46
0.04
0.59
0.05
0.71
0.06
0.85
0.07
0.98
0.08
1.12
0.09
1.26
0.11
1.41
0.12
1.56
0.13
1.71
0.14
1.87
0.16
2.03
0.17
2.20
0.18
2.37
0.20

At the bank savings interest rate of


Imagine if you had spent
or
saving
Your personal contribution would be ($)
But your saving account show ($)
The price of the house ($) :
your loan would be for ($)

Year
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2

2.54
2.72
2.90
3.08
3.27
3.46
3.65
3.85
4.05
4.26
4.47
4.68
4.90
5.12
5.35
5.57
5.81
6.04
6.28
6.52
6.77
7.02
7.28
7.53
7.80
8.06
8.33
8.60
8.88
9.16
9.44
9.73
10.02
10.32
10.62
10.92
11.23
11.53
11.85
12.17
12.49
12.81
13.14
13.47
13.81
14.15
14.49
14.84

0.21
0.23
0.24
0.26
0.27
0.29
0.30
0.32
0.34
0.36
0.37
0.39
0.41
0.43
0.45
0.46
0.48
0.50
0.52
0.54
0.56
0.59
0.61
0.63
0.65
0.67
0.69
0.72
0.74
0.76
0.79
0.81
0.84
0.86
0.88
0.91
0.94
0.96
0.99
1.01
1.04
1.07
1.09
1.12
1.15
1.18
1.21
1.24

2
2
2
3
3
3
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
5
5
5
6
6
6
6
6
6
6
6
6

15.19
15.54
15.90
16.26
16.63
17.00
17.37
17.75
18.13
18.51
18.90
19.29
19.69
20.08
20.49
20.89
21.30
21.72
22.13
22.55
22.98
23.41
23.84
24.28
24.72
25.16
25.61
26.06
26.51
26.97
27.43
27.90
28.37
28.84
29.32
29.80
30.28
30.77
31.26
31.76
32.25
32.76
33.26
33.77
34.29
34.81
35.33
35.85

1.27
1.30
1.33
1.36
1.39
1.42
1.45
1.48
1.51
1.54
1.57
1.61
1.64
1.67
1.71
1.74
1.78
1.81
1.84
1.88
1.91
1.95
1.99
2.02
2.06
2.10
2.13
2.17
2.21
2.25
2.29
2.32
2.36
2.40
2.44
2.48
2.52
2.56
2.61
2.65
2.69
2.73
2.77
2.81
2.86
2.90
2.94
2.99

6
6
6
7
7
7
7
7
7
7
7
7
7
7
7

36.38
36.91
37.45
37.99
38.53
39.08
39.63
40.18
40.74
41.30
41.87
42.44
43.01
43.59
44.17
44.75
45.34
45.93
46.53
47.13
47.73
48.34
48.95
49.56
50.18
50.80
51.43
52.06
52.69
53.32
53.96
54.61
55.25
55.91
56.56
57.22
57.88
58.55
59.22
59.89
60.57
61.25
61.93
62.62
63.31
64.01
64.71
65.41

3.03
3.08
3.12
3.17
3.21
3.26
3.30
3.35
3.40
3.44
3.49
3.54
3.58
3.63
3.68
3.73
3.78
3.83
3.88
3.93
3.98
4.03
4.08
4.13
4.18
4.23
4.29
4.34
4.39
4.44
4.50
4.55
4.60
4.66
4.71
4.77
4.82
4.88
4.93
4.99
5.05
5.10
5.16
5.22
5.28
5.33
5.39
5.45

66.12
66.83
67.54
68.26
68.98
69.70
70.43
71.17
71.90
72.64
73.39
74.13
74.88
75.64
76.40
77.16
77.93
78.70
79.47
80.25
81.03
81.81
82.60
83.39
84.19
84.99
85.79
86.60
87.41
88.22
89.04
89.86
90.69

5.51
5.57
5.63
5.69
5.75
5.81
5.87
5.93
5.99
6.05
6.12
6.18
6.24
6.30
6.37
6.43
6.49
6.56
6.62
6.69
6.75
6.82
6.88
6.95
7.02
7.08
7.15
7.22
7.28
7.35
7.42
7.49
7.56

savings interest rate of


ou had spent

al contribution would be ($)


ving account show ($)
the house ($) :
ould be for ($)

Month

3.00% per annum


7 years
84 months
1,037.29 per month
87,132.38
96,822.66
290,329.00
193,506.34

Monthly
Cumulative
saving
Savings+Interest
1
1,037.29
1,037.29
2
1,037.29
2,077.17
3
1,037.29
3,119.66
4
1,037.29
4,164.75
5
1,037.29
5,212.45
6
1,037.29
6,262.77
7
1,037.29
7,315.72
8
1,037.29
8,371.30
9
1,037.29
9,429.51
10
1,037.29
10,490.38
11
1,037.29
11,553.89
12
1,037.29
12,620.07
13
1,037.29
13,688.91
14
1,037.29
14,760.42
15
1,037.29
15,834.61
16
1,037.29
16,911.49
17
1,037.29
17,991.06
18
1,037.29
19,073.33
19
1,037.29
20,158.30
20
1,037.29
21,245.99
21
1,037.29
22,336.39

<-<-<-<-<-<-<-<--

you can change this figure


you can change this figure
calculated for the "years" figure
calculated monthly house loan repaym
what you would have put into your sa
what is in your savings account with t
the house price you proposed to purch
the house price - the savings, assumin

22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29

23,429.52
24,525.39
25,623.99
26,725.34
27,829.44
28,936.31
30,045.94
31,158.34
32,273.53
33,391.50
34,512.27
35,635.84
36,762.22
37,891.42
39,023.44
40,158.29
41,295.97
42,436.50
43,579.89
44,726.13
45,875.23
47,027.21
48,182.07
49,339.81
50,500.45
51,663.99
52,830.44
53,999.81
55,172.10
56,347.32
57,525.48
58,706.58
59,890.64
61,077.66
62,267.64
63,460.60
64,656.54
65,855.47
67,057.40
68,262.34
69,470.28
70,681.25
71,895.24
73,112.27
74,332.34
75,555.46
76,781.64
78,010.88

70
71
72
73
74
75
76
77
78
79
80
81
82
83
84

1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29
1,037.29

79,243.20
80,478.60
81,717.09
82,958.67
84,203.36
85,451.16
86,702.07
87,956.12
89,213.30
90,473.62
91,737.10
93,003.73
94,273.53
95,546.50
96,822.66

ge this figure
ge this figure
the "years" figure
nthly house loan repayment
ld have put into your savings account
r savings account with the interest
ce you proposed to purchase
ce - the savings, assuming the house price is constant

You can download this file from http://www


All rights reserved. Copyright Peter Ach
You are licensed to use this file and redist
do not remove this license message and c
- Dr. Peter Achutha PhD (14 May 2009)

In Economics there is a concept about subtitute products a


you will find a substitute product as a competing product.
So, with respect with banking services there are competitn
credit card companies, loan sharks and money lenders. I w
This is where a group of trusted friends come together an
This contribution, the pot, is then given to one member of
member gets the total collection. And this is carried out un

Let say you and your friends, named A, B, C, D & E, wante


Total number of friends
Monthly contribution per person is
At the end of a year the group collection would be

Every year each of your friends can take turns to purchase


Let us say at the end of the first year A purchaces a car.
At the end of the second year B purchases a car and so
until at the end of the fifth year E purchases a car.

Did you pay loan interest to the bank? No.


Did you need a guarantor? No. It is a very dangerous being

The snag you will find here is that everyone wants to be th


so that every year you increase the contribution by 2% or
pot' will have a better return on investment for his longer w
monthly contribution
annual increment
Number of Contributors

Year

Individual
Contribution ($)
1
1,000.00
2
1,020.00
3
1,040.40
4
1,061.21
5
1,082.43

Now there are precautions you need to take:


1) What if one friend dissappers after he has collected his
2) You can have the car registered in all five member's nam
3) Best to get a lawyer to draft out how each one will ente
4) Get an expert advice - someone experieced in these ma
5) You don't have to purchase a car, when your turn comes

wnload this file from http://www.bachutha.com


served. Copyright Peter Achutha, 2009, Malaysia
nsed to use this file and redistribute this file provided you
ove this license message and copyright message.
Achutha PhD (14 May 2009)

ept about subtitute products and services. That is for every product out there
duct as a competing product. For example magerine is a substitute for butter.
g services there are competitng products and service. The most obvious is the
sharks and money lenders. I will tell you of another system commonly practised in Asia.
sted friends come together and make a contribution every month.
then given to one member of the group to help him out with his finances. The next month another
tion. And this is carried out untill everyone gets their turn and the cycle is repeated again.

, named A, B, C, D & E, wanted to purchase a car that cost

p collection would be

nds can take turns to purchase a new car.


first year A purchaces a car.
r B purchases a car and so forth
ear E purchases a car.

the bank? No.


o. It is a very dangerous being a guarantor for a bank.

s that everyone wants to be the first to collect the 'pot'. If you modified this system
ase the contribution by 2% or 4% to keep up with inflation so that the last person to receive the
on investment for his longer waiting time.
1,000.00
2.00%
5
Annual
Amount ($)
60,000.00
61,200.00
62,424.00
63,672.48
64,945.93

<-- you can change this figure


<-- you can change this figure
<-- you can change this figure

The last person would have contributed ($)

62,448.48

ou need to take:
ers after he has collected his 'pot' - no more contributions from him. Need to find a new member?
stered in all five member's names until the cycle is complete
aft out how each one will enter into the group and how they can leave the group.
meone experieced in these matters
e a car, when your turn comes. You can put a down payment towards a house.And take a smaller house loan. Sm

h another

60,000.00
<-- you can change this figure
5
<-- you can change this figure
1,000.00
60,000.00 plus bank interest on the savings

and received ($)

64,945.93

smaller house loan. Smart?