Reducing balance loans: recurrence relations, the finance solver, repayments, term and total interest

What this note covers

1. Understand the reducing-balance process
2. Calculate a repayment for a fixed term
3. Enter a loan in the finance solver
4. Find balance, term and the final payment
5. Calculate total repayments and total interest
6. Check domain, rounding and conclusions

6 sections · 10 key terms & formulas · 6 common mistakes