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 Topic: amortization
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 Loan payment formula 2019-02-24 From Kenneth:I have a question regarding the loan payment formula shown below. Calculating the Payment Amount per Period The formula for calculating the payment amount is shown below. Simple Amortization Calculation Formula A = P X r(1 + r)n over (1 + r)n - 1 where A = payment Amount per period P = initial Principal (loan amount) r = interest rate per period n = total number of payments or periods Is this formula/calculation a condensed version of a longer calculation? I am curious to know how the (1 +r)n - 1 was developed from the longer calculation. For example, r(1 + r)n may have been (r + rn)n. The n's are exponents. I thank you for whatever helpful explanation that may be provided. Kenneth Answered by Harley Weston. A loan of \$50,000 2005-12-14 From Fre:A loan of \$50,000 taken today is payable within five years. a. determine the annual payments within to be made to repay the loan if interest is charged at a rate of 10% compounded annually b. show the amortization scheduleAnswered by Penny Nom. Monthly payments 2001-06-12 From Anthony:This question is base on my interest. I would like to know the formula for calculating this example: If you borrow \$10,000 from a bank with an APR of 11.7% to be paid off in 5 years, what is your monthly payment?Answered by Penny Nom.

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