in this case you cannot call these 4% "an annual" interest! or in other word, the annyal interest is not 4%! It's wrong to calculate 4% x 5 years = 20, and then apply these 20 to WHOLE amount of principal! Because every year your principal becomes less and less, so why you apply these 4% to the same 45,000 every year??
Listen, if the banks which give mortgages on propreties for 20-25-30 years calculated the interest the same way (4% x 25 years), it would be considered as a robbery... and actually in whole world the calculation on the loans is similar to one I gave in my example, the "progressive" one...
but here... it's not actually QR45,000 (since there are some hidden fees) and it's not 4% (since it's calculated this defective way)...
so may be let's call the things by their real names?
in this case you cannot call these 4% "an annual" interest! or in other word, the annyal interest is not 4%! It's wrong to calculate 4% x 5 years = 20, and then apply these 20 to WHOLE amount of principal! Because every year your principal becomes less and less, so why you apply these 4% to the same 45,000 every year??
Listen, if the banks which give mortgages on propreties for 20-25-30 years calculated the interest the same way (4% x 25 years), it would be considered as a robbery... and actually in whole world the calculation on the loans is similar to one I gave in my example, the "progressive" one...
but here... it's not actually QR45,000 (since there are some hidden fees) and it's not 4% (since it's calculated this defective way)...
so may be let's call the things by their real names?