I am a newbie with loans and investments. I really want to know the difference between loans and investments on a project. I have a solar project for which I am looking for investments. I heard that investments are offered at a 13% interest. Now if I use the calculator on this page (http://www.planabettermortgage.com.au/loan-calculators/p--i--interest-only.htm), for a 7 year 875,000$ loan with 13% interest, the monthly P&I comes to 16,000$. This is a loan calculator. Is this how investments also work ?


How much return you have to pay investors depends on how well you can convince them that your project will succeed -- how much risk they think they are taking, and how much return they get on the investment, determine whether they invest at all. Similarly, the payment schedule is whatever you and they work out; it is usually not a simple monthly amortization.

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