S
Sunit_K
Member
The question asks for the extra interest they are paying on the restructured loan as compared to the original loan.
In the solution, they have found the answer only for the remaining years as opposed to the whole loan term.
My understanding is, the question asks for the total difference. As Mr & Ms Jones would compare the total interest they are paying on the original loan to the new restructured loan.
Can anyone please clear this? It would also be helpful if one could be clear as when to use these two different methods.
Many thanks!
In the solution, they have found the answer only for the remaining years as opposed to the whole loan term.
My understanding is, the question asks for the total difference. As Mr & Ms Jones would compare the total interest they are paying on the original loan to the new restructured loan.
Can anyone please clear this? It would also be helpful if one could be clear as when to use these two different methods.
Many thanks!