The current annual interest rate for loans over 5 years is 6.8%. If you borrow 100,000 yuan with a term of 10 years, there are two repayment methods, which are explained as follows:

1. Using the equal principal and interest method for repayment: the monthly repayment amount is 1,150.80 yuan (the same every month), the total repayment in 10 years is 138,096.40 yuan, and the total interest is 38,096.40 yuan.

2. Adopt equal principal repayment method: the first month’s repayment amount is 1,400 yuan (will be reduced month by month thereafter), the last month’s repayment amount is 838.06 yuan, and the 10-year repayment amount is The total amount of the payment is 134,283.33 yuan, and the total interest is 34,283.33 yuan.

Comparing the above two repayment methods, the monthly repayment amount of the equal principal and interest method is the same; the monthly repayment amount of the equal principal method is larger in the early period, and will become less in the future. The total interest is higher than the equal principal and interest method. Fa Shao 3813.06 yuan.

Hope it helps.