Fixed vs. Variable Interest Rate Loan Analyzer

A mortgage calculator that compares the total interest paid under a fixed interest rate versus a variable interest rate over the same period. Users can input the loan amount, the fixed interest rate, the loan term, and varying annual interest rates for each year, to see which option is more cost-effective.

Formula to calculate future value of the investment

Fixed Rate Total Interest:

Total Interest = P × r × n ext{Total Interest} = P imes r imes n
Where P is the principal amount, r is the annual fixed interest rate, and n is the number of years.

Variable Rate Total Interest for Each Year:

Total Interest = ∑ i = 1 n P i × r i ext{Total Interest} = sum_{i=1}^{n} P_i imes r_i
Where Pi is the principal amount for year i, riis the annual variable interest rate for year i, and n is the number of years. For simplicity, we assume the principal does not decrease over time.
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