Loans and debt: borrow wiselyStep 1 of 7
How interest works and what a loan really costs
Nominal vs. effective rate, fees, add-on insurance, annuity payments and how to work out the total overpayment.
The number in the ad
Murad wants a 2,000 AZN loan for furniture. XBank’s ad says in big letters: “Only 24% a year!” Murad reckons 24% of 2,000 is 480 AZN, so he’ll overpay 480 AZN. In reality it works a bit differently.
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