Personal loans from banks and savings banks are often awarded as annuity, as the constant rate provides a good basis for calculation for the customer.
The annuity is a form of real estate financing. In Germany, the interest rate is usually written for five, ten or fifteen years. Thereafter, the contract may be terminated or a new interest rate for the continuation of the contract to be negotiated.
Alternatively, you can also agreed a variable rate that is periodically updated, as a function of EURIBOR or another index. Another option is to replace the annuities through consistent monthly payments, which pay to one twelfth of the annual nominal interest rate is. This combination (monthly repayment at constant rates, but can be affected by interest rate changes each year) is about the most common form in Spain. Since in this case the customer more risk, requires much lower interest rates (2005: less than 3% annual rate).
) and a maturity of n years can be by means
means this recovery, or annuity
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) and is equal to the reciprocal value of the annuity present value factor. 
