Annuity and Differentiated Loan Payments: What to Choose

Abstract

The article discusses two main types of loan repayment schemes - annuity and differentiated payments, as well as their advantages and disadvantages for borrowers. The author conducts a comparative analysis of these schemes using the example of a loan with a fixed amount and term. The impact of various schemes on the amount of monthly payments, the total overpayment on the loan and the financial planning of the borrower is considered. Detailed calculations for each scheme are provided, as well as graphs and tables showing the dynamics of debt repayment by month.