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Reducing Balance Loans Calculation


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Is the HDB housing loan a reducing balance loan?

 

If so, how is the monthly instalment amount calculated?

 

I understand that if the monthly instalment is X, then X = Y+Z where Y goes toward principal and Z toward interest. Over time, X remains constant but Y and Z will change.

 

How is X determined? How are the proportions of Y and Z determined?

 

attached: example using CPF website calculator

post-211521-0-98259500-1554370314.png

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