good explanation. all loans and mortgages work like example 2 in your post.

this flat rate loan is rubbish. it's legalized loan sharking. and i'm sure these banks go on an on about their muslim values too.

if they calculate my loan at 4% using this flat rate, then i'm sorry but the annual rate is 8%, not 4%.

crooks.

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"Even a stopped clock gives the right time twice a day." Withnail & I