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A Tedesco Systems of Amortization: The Case of Simple Interest

Year: 2025

Type: article

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.

Source: International Journal of Economics Business and Management Research

DOI: 10.51505/ijebmr.2025.9301

Authors: Gerson Lachtermacher, Clovis de Faro

Institutions: Universidade do Estado do Rio de Janeiro, Escola Brasileira de Economia e Finanças, Fundação Getulio Vargas

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W4409307582

FWCI:

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