TITLE:
Amortization System in the Simple Interest Regime: Comparison between Two Proposals in the Case of Constant Installments
AUTHORS:
Clovis de Faro, Gerson Lachtermacher
KEYWORDS:
Constant Installment Amortization Systems, Simple Interest Amortization Systems, Brazilian and Italian Amortizations Systems
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.3,
June
25,
2024
ABSTRACT: This article aims to compare methodologies for amortization systems with constant installments (French system), in simple interest, developed in Brazil (Forger and Lachtermacher & de Faro) and in Italy (Mari & Aretusi and Annibali et al.). This work considers the focal dates at the beginning and end of financing. In all cases, the methodologies proved to be financially consistent. At the end of the work, a study on possible tax gains for financing companies is carried out.