What’s In It For Me?
Comparing Bank Loan Equations
 

where:

T = total amount of debt
P = principal; equal to the original investment
i = interest rate per interval, expressed as a decimal
n = number of equal intervals

  Amortization Equation

where:

R = amount of periodic payment 
L = amount of the loan 
i = interest rate per interval, expressed as a decimal 
n = number of equal payments 

  

R_{r =} repayment rate, $ per $ per month 
n = number of equal payments, months 
f_{m =} bank monetizing-fee per month, expressed as a decimal 
C_{f =} cost factor for the loan 
L = amount of the loan 
M_{b =} base monthly payment 
C_{b =} base cost for the loan