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What is the calculation formula of equal repayment?
Housing loans are divided into two ways: provident fund loans and commercial loans, and commercial loans are divided into two mortgage ways: equal principal and interest and average capital. Matching principal and interest repayment method: repay the same amount of loan principal and interest every month, in which the interest decreases month by month and the principal increases month by month. Monthly repayment amount of matching principal and interest plan = [loan principal × monthly interest rate ×( 1+ monthly interest rate) × repayment months] = [(1+monthly interest rate) × repayment months]

Average capital repayment method: repay the average capital every month and reduce the interest part every month. Average planned monthly repayment amount of funds = (loan principal ÷ repayment months)+(loan principal-accumulated repaid principal) × monthly interest rate.

In the actual operation process, matching principal and interest is more conducive to the borrower to master and facilitate repayment. In fact, after comparison, most borrowers still choose the method of matching principal and interest, because this method has a fixed monthly repayment amount, is easy to remember and has a balanced repayment pressure, which is actually not much different from the average capital.