**REPAYMENTS**

**The
minimum amount the borrower is required to repay. Repayments may be
due monthly or fortnightly depending on your contract.**

**Level
repayments with a reducing interest (the common method for home loans) component is known as credit
foncier.**

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Monthly repayments of a credit foncier loan can be calculated with the
following formula:**

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monthly repayments = amount borrowed/ (1-1/(1+i^n)/i)**

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Where:**

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i = monthly interest rate as a decimal**

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n = number of months**

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