I took a closer look at the available loans in Cities Skylines. They are:

**Silver Sunset Bank**
Amount: 20,000

Payment Plan: 52 Weeks

Interest: 5 %

Weekly Cost: 403.85

Total 21,000 c

**Global Credit Inc.**
Amount: 60,000

Payment Plan: 260 Weeks

Interest: 10 %

Weekly Cost: 253.85

Total 66,000 c

**Pyramid Capital**
Amount: 200,000

Payment Plan: 520 Weeks

Interest: 15 %

Weekly Cost: 442.31

Total 230,000 c

These loans appear to be

annuity loans (the payment plan has a fixed periodical cost). The interest is calculated as (Total / Amount) - 1, so I converted it to the equivalent annual interest, and got the following:

Silver Sunset Bank: 9.66 % per year

Global Credit Inc.: 3.86 % per year

Pyramid Capital: 2.86 % per year

The equation is: A = S*p/(1-(p+1)^(-n)), where A is the weekly cost, S is the amount, p is the periodical interest (in this case interest per week) and n is the payment plan. Using the

bisection method it's then possible to solve for p. Finally, p*52 gives the annual interest.

So although the game makes it appear as if Silver Sunset Bank has the best deal (5% interest), the annual interest suggests that it's actually Pyramid Capital's loan that is the best. At least if you intend to invest the money to generate growth. If it's just for luxury consumption (e.g. building yet another fancy monument) then Global Credit Inc. is probably the best as it has the lowest weekly cost.

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