  Math Central - mathcentral.uregina.ca  Quandaries & Queries    Q & Q    Topic: amortization calculation   start over

One item is filed under this topic.    Page1/1            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.      Page1/1    Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences.    about math central :: site map :: links :: notre site français