Home Financing Analysis Taking Inflation and Variable Interest Rates into Account With Ordinary Annuities

Fathurrohman, Rafi Bintang
Guntarajati, Pandu

Operations Research: International Conference Series
Vol. 5 No. 4 (2024): Operations Research International Conference Series (ORICS), December 2024

This study aims to determine the effect of variable interest rates and inflation on the credit system, namely Home Ownership Credit (KPR) using the ordinary annuity approach. This KPR can be influenced by several factors, especially the variable interest rate and inflation factors that affect the total monthly installments that must be paid by customers. In this study, the ordinary annuity approach is used to determine the KPR installment payments by taking into account fluctuations in variable interest rates and inflation. By looking at interest rate and inflation data from year to year. The results of this study indicate that inflation affects people's purchasing power while interest rates affect the amount of installment fees that must be paid. It is hoped that this study can help customers to understand the risks that can occur regarding KPR facilities in economic dynamics.