Equal principal and interest repayment method: repay the loan principal and interest in equal amount every month, in which the interest decreases month by month and the principal increases month by month.

Average principal repayment method: equal repayment of principal every month. When the principal is reduced, the monthly interest is also reduced, and the monthly repayment amount is also reduced accordingly.

The calculation formula of equal principal and interest is: [loan principal × monthly interest rate ×( 1+ monthly interest rate )× repayment months ]⊙[( 1+ monthly interest rate )× repayment months]

Average capital calculation formula: monthly repayment.

=

(loan principal)

/

Number of repayment months)+(principal

—

Accumulated principal repayment amount) × monthly interest rate

In which symbols represent power.