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Abstract: The Tedesco system of debt amortization
have been discussed both in the Italian specialized literature, and in Brazil,
where has been called German Method, assuming compound capitalization. Both
approaches are characterized by the payment of interest at the beginning of the
period, and constant installments. However, they have different ways of
determining interest, amortization and installment.
Recently, the German method has been developed in Brazil, for simple interest capitalization. We develop, in this article, the Tedesco Method for simple capitalization and compare it to the German Method to determine which of them is a better option for the financial institution providing the loan. DOI: https://doi.org/10.51505/IJEBMR.2025.9301 |
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