ازاى البنك بيحسب فوائد القروض و الشهادات. و ازاى تقدر تحسب قسط القرض بتاعك بطريقه سهله

Understanding Bank Loans and Interest Rates

Types of Interest Rates on Bank Loans

• The discussion begins with an overview of the differences between fixed interest rates on bank loans and variable interest rates, emphasizing their calculation methods.

• Fixed interest rates are described as consistent over time, exemplified by a five-year deposit where the annual return is calculated based on a set percentage.

• In contrast, variable interest rates fluctuate; for example, if a loan amount decreases due to repayments, the interest charged will also adjust accordingly.

Calculating Loan Interest

• An example illustrates how to calculate interest on a loan: starting with an initial amount of 90,000 EGP at an interest rate of 20% over three years.

• During the first year, the full principal amount is used to calculate interest. As repayments are made in subsequent years, only the remaining balance is considered for future calculations.

Understanding Amortization

• The concept of amortization is introduced; banks typically calculate payments monthly rather than annually.

• A method for converting variable interest into fixed terms is discussed to simplify understanding and management of loan payments.

Steps for Simplifying Loan Calculations

• The process involves three steps: converting variable rates into fixed ones and calculating total repayment amounts over the loan duration.

• A formula is provided to approximate fixed-rate equivalents from variable rates using specific mathematical adjustments.

Final Calculation Insights

• The final step includes determining total payments across all years based on simplified calculations derived from earlier steps.