How does the loan calculator work?

The loan calculator is used to determine monthly loan payments, including the total interest, that will need to be paid, helpful for keeping track of finances!

Why use the loan calculator?

The loan calculator serves as a crucial tool for many who are considering financing anything. It provides a simple breakdown of potential loans, giving people the ability to assess affordability and make informed decisions for themselves. By entering variables such as loan amount, interest rate, and loan term, you can calculate monthly payments and total interest costs. This information offers options considering financial circumstances, keeping people on track of their payment plans. Ultimately, using the loan calculator promotes financial responsibility, helping people through the tedious process of financing anything!

A Brief History of Banks

Banks have been a fundamental part of society since ancient times. Early banking began almost four millennia ago around 2,000 B.C. in Mesopotamia, temples were used as repositories for valuables, and records of transactions were kept. Later Greek and Roman civilizations adopted basic banking systems, the first modern bank was erected during the Renaissance in Italy. The Medici family built the first bank in the year 1397 in the city of Florence Italy. The rise of central banks was seen in the 17th century, for example, the Bank of England in 1694, to structure national finances. During the 20th century in the Great Depression, financial regulations like the Glass-Steagall Act of 1932 in the United States, allowed banks of the Federal Reserve to lend to five or more Federal Reserve system members or any individual member bank with a capital stock not exceeding five million dollars, against collateral. This forced commercial banks to refrain from investment activities and protect depositors from losses. Banks still play key roles in economies around the world, giving many financial institutions the ability to grow their economies.

Input fields explained

• Loan amount($): Enter the total amount that is being borrowed.
• Annual interest rate(%): Enter the interest rate of the loan.
• Loan term(years): Enter the amount of years it will take in order to pay off the loan.

Understanding the results

Once every input field has been entered and "calculate" has been clicked, the loan calculator will provide an answer, and your monthly payments will include the total amount paid, interest amount paid, and amortization schedule will be provided!