Financial Models
Interest Saving Strategies: Making Larger Repayments

Financial Models

Investments

• Simple interest formula
• Compound interest formula
• Compound interest {TI-84 Plus CE}
• Future value annuities
• Effective rates of interest
• Taxation
• Inflation
• Superannuation​​

Loans

• Reducing balance loans
• Home loans (calculations with variable rates)
• Interest only loans and sinking funds
• Comparison interest rates

Strategies to minimise interest

• Making larger repayments
• Making more frequent repayments
• Reducing the term of the loan
• Changing interest rates
• Making lump-sum payments
• ​Using an offset account​​

Some loans, in particular home loans, can accumulate significant amounts of interest over the duration of the loan, to the extent that it isn't uncommon to pay more in interest than the original loaned amount. Therefore it is important to investigate possible strategies that can be used to reduce the total amount of interest paid on the loan.