What is an annuity scheme payments on the loan?

Our problem is to explain to the reader all the most difficult moments of the mortgage. But while there is the concept of "annuity payment, our mission will be considered unfinished. This formulation may be encountered in any contract, and it should not be afraid. In fact, an annuity - a payment of your debt to the bank in equal shares. At the bank you calculate the amount, and each month you'll pay it, every time the same. Add that in the annuity payment includes interest and principal. Payment formula for calculating its payments to better use the online calculator, but if you are burning desire to remember the lessons of algebra, then we will give you that opportunity. AP is the annuity payment, SC-term loan, the PS-interest rate. -M - it is minus the degree of the number of months. Another payment of rare endangered species - a differentiated payment. Here the payments are not identical, but rather is constantly decreasing. This scheme is advantageous for the borrower, since the actual credit the debtor to pay less, but it is rarely used cans. For comparison, look at the numbers. For example, I took the bank 1.5 million USD for 20 years at 13%. When annuity scheme, I'll give the bank 181% of the amount taken, but due to the differentiated only - 130%. The difference is impressive.