Flat Rate Loans

In Flat Rate Loans, Interest is calculated using the Simple Interest Formula, you calculate the full term of the loan at once. Interest is spread evenly about all the loan repayments.

Danger

Remember, Simple Interest compounds ONCE, meaning you should only ever take a percentage on the Initial Simple Interest value, and never again. Instead of 5% of the amount it changes to a constant, .

TL;DR never touch again after calculating

Finding Total Interest §

Use the Simple Interest Formula. = Principal = Rate = Time Period

Finding Per-Repayment Amount §

Tranditional (Given , & Repayments) §

Where: = Principal = Simple Interest = the amount of monthly repayments, (check indent) e.g. If was calculated with (2 years), with monthly repayments in those two years, this value is to get the amount of months in the Simple Interest formula.

Arithmetic (Given Common Difference) §

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Example §

4032, 3864, 3696 is the first, therefore sub into , to get: