MathDoctorBob
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Example of Loan Payment Calculation
Basic Finance: A 30 year loan of $1000 is given at 8%. Verify that the monthly payment is $7.34. We calculate the payment by using two separate cash streams, one for the principal and one for the payments. Then we apply a geometric sum to the payments.
Related topics : loan calculator payment
Example of Loan Amortization
Basic Finance: A loan of $50,000 is given with a term of 30 years at 8% interest. The monthly payment is $366.88. For the first three payments, (a) calculate the balance on the principal after each payment, and (b) split the payment into the amounts paid on the principal and interest.
Related topics : loan calculator payment amount
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