The face, or par value of a bond, is the amount paid by the issuer (borrower) when the bond matures, assuming the borrower doesn't default. Technically, bonds operate differently from more conventional loans in that borrowers make a predetermined payment at maturity. This kind of loan is rarely made except in the form of bonds. Bond: Predetermined Lump Sum Paid at Loan Maturity Some loans, such as balloon loans, can also have smaller routine payments during their lifetimes, but this calculation only works for loans with a single payment of all principal and interest due at maturity. Unlike the first calculation, which is amortized with payments spread uniformly over their lifetimes, these loans have a single, large lump sum due at maturity. Many commercial loans or short-term loans are in this category. Instead of using this Loan Calculator, it may be more useful to use any of the following for each specific need: Mortgage CalculatorÄeferred Payment Loan: Single Lump Sum Due at Loan Maturity Below are links to calculators related to loans that fall under this category, which can provide more information or allow specific calculations involving each type of loan. The word "loan" will probably refer to this type in everyday conversation, not the type in the second or third calculation. Some of the most familiar amortized loans include mortgages, car loans, student loans, and personal loans. Routine payments are made on principal and interest until the loan reaches maturity (is entirely paid off). Many consumer loans fall into this category of loans that have regular payments that are amortized uniformly over their lifetime. However, the manufacturer's thorough inspection process - and specialized warranty - will assure that you are buying a well-cared-for vehicle.Amortized Loan: Fixed Amount Paid Periodically A CPO car will have a lower price tag than a new car, but a higher pricetag than a non-CPO version of the same vehicle. When shopping for a used car, consider a certified pre-owned option. But it will be less expensive to purchase, may have lower insurance rates and depreciate more slowly than a new car. It may also become increasingly expensive to maintain as the car gets older and parts stop being manufactured. Considerations when buying usedĪ used car comes with potentially higher maintenance costs and its driving history may include undisclosed issues or accidents. When shopping for new vehicles, be sure to research your purchase and test drive different versions of the models you are interested in before making a final decision. But new vehicles cost more, have more expensive car insurance and depreciation more quickly than similar used cars. You may also find new tech that makes your ride safer, more reliable and more efficient. New vehicles often have better interest rates and the option to customize your purchase to your needs. Purchasing new can be a good choice if you are comfortable spending a bit more money and want the most advanced features and lower initial maintenance costs. But buying used may also mean compromising on the newest available features. At the simplest level, buying used instead of new will cost you less money.
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