Rate and Repayment Changes and Reducing Balance Loans is a part of the VCE Further Maths topic Recursion and Financial Modelling. It is part of the subtopic Reducing Balance Loans.
What Impact Does Varying the Interest or Repayment Have on the Loan?
What you will often find is the lower the interest rate or higher the repayments, it will not take as long to pay back the loan. However, if the interest rates are higher, or repayments are lower, the longer it will take to pay back the loan. The following video will explain the impact of varying the interest or repayment on loans.
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