Amortization
The second page of this aplet allows amortization calculations in order to determine the amounts applied
towards the principal and interest in a payment or series of payments.
Suppose we borrow $20,000 at an interest rate of 6.5% and make
monthly payments of $300. The initial situation is as shown in the screen
on the right.
button to change to the amortization screen.
The initial appearance is as shown. As can be seen, the default number
of payments to amortize over is 12.
Press the
Pressing the
button will amortized the loan over the first year. As
can be seen right, $2,369.77 has been paid off the principal, leaving a
balance of $17,630.23. Of the payments made, $1,230.23 went
towards the payment of interest.
button will transfer the balance back to the previous
page as the new value of the
PV.
Pressing the
At this stage you can amortize again for another 12 months as shown
right. This can be continued indefinitely.
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General
Weight and Dimensions
