Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
A Comparison of the German and Tedesco Systems of Amortization
Abstract
Although not very popular neither in Brazil nor in Italy, the German and Tedesco systems of debt amortization have been
discussed both in the Brazilian specialized literature, as well in the corresponding Italian literature.
Both methods are characterized by the payment of the interest in advance, at the beginning of the period, and constant
installments. However, they have different ways of determining the interest, amortization and installment.
In this article we highlight the differences and compare both methods to the so-called French methods to determine which
of them is a better option for the financial institution providing the loan.
