Understanding Loans with the Help of Math

Math skills are necessary to carry out lots of daily tasks.
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Understanding Loans with the Help of Math

Earlier, we told you about the connection between math and traveling. Now let’s see how it can help you with personal finances, namely taking loans.

Borrowing money is a serious responsibility, so one has to make sure that the loan is affordable before taking it. There are many things to be considered as there are different kinds of loans. If it’s an interest-only loan, you’d only be paying interest at first. In case of an amortized loan, you pay both principal and interest during the life of the loan.

Understanding loans


Moreover, you need to be able to calculate your monthly payments yourself; otherwise, lenders may trick you into paying more by stretching out the loan. For example, an eight-year loan demands lower monthly payments than a five-year loan but makes you pay more interest.


Next, we’ll tell you about the connection between math and home decorating.

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