Author: investinternals

Investor with 20 years of experience in equities, equity related investments, debt and alternative investments such as real estate, gold, siver, bonds, international equities etc. I a also an investment and personal finance trainer,
diminishing interest rate

How Banks Calculating the Diminishing Balance Interest Rate on Loans

When calculating interest on loans, banks commonly employ the diminishing balance method. This method involves calculating interest on the outstanding loan balance, which decreases with each repayment. Unlike the flat rate method, where interest is fixed based on the initial loan amount, the diminishing balance approach ensures that borrowers pay interest only on the portion they still owe. This translates to lower overall interest payments over the loan term.

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Prepare for a Personal Financial Crisis

Complete Guide to Protect Self and Family from Financial Crisis

In today’s unpredictable world, financial preparedness is paramount. This comprehensive guide empowers you to safeguard your family from financial crises. Discover practical strategies to build a resilient financial safety net, manage risks, and secure your family’s well-being.

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