If you delve into the theory of credit, there are three main forms of loan repayment: annuity payment, the payment of the loan in equal installments and the payment at maturity. Comparing them together with the same interest rate, you can see that the main parameter overpayment on the loan – in all cases will be different. Therefore, to calculate the rate on the loan, specify how the scheme of payments. Usually in retail lending and in lending for a relatively small (by banking standards) amounts used for annuity payments.
You without special work can find a formula annuity. It consists of several variables: loan amount, its duration and laying rate of interest. Knowing this formula and the principle of charging interest on the outstanding balance to calculate the rate for the loan, build in MS Excel or another similar editor to the appropriate table similar to the payment schedule that you gave in the Bank.
If you do not own MS Excel good enough or just want to save time, search the Internet loan calculator. You will need to specify the amount of the loan, its rate and the expected term. Usually the loan offers to introduce additional parameters of the loan, for example, a Commission in the issuance, and other monthly payments. If you never heard of them, leave these fields blank. The calculator will automatically take the calculations and displays the result in a table based on the specified percentage. All you have to do to calculate the rate for the loan is to compare obtained from the Bank calculate the payment schedule on the computer monitor. If they match or differ slightly, within the margin of error, so the rate advertised by the Bank is real.