PRICE Simulator
Simulate fixed installments from beginning to end (PRICE Table).
What is the PRICE Table?
Also known as the French Amortization System, the PRICE Table (named after its creator Richard Price) is the dominant model in installment purchases, vehicle financing, and personal loans worldwide.
The fixed installments that deceive
The main feature of the PRICE Table is thatthe installment never changes in valueYou pay exactly the same amount in the first and last installment. However, what happens \"behind the scenes\" is that at the beginning of the contract, 90% of your installment is only serving to pay interest, and almost nothing reduces the actual debt (principal repayment). This is the main reason why, when you try to pay off a car in the second year of use, the bank says you still owe almost the total value of the car, even after having made dozens of payments.