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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.
Press the 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.
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.
Pressing the button will transfer the
balance back to the previous page as the new
value of the PV.
At this stage you can amortize again for
another 12 months as shown right. This can be
continued indefinitely.
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