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 Topic: loan payment
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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. Compound Interest 1999-07-01 From Kim Palmer:In early 1997, my son borrowed \$4831 at 7.5%. He has made 30 monthly payments of \$130 each. He is now in a position to pay off the balance. What is his remaining principal?Answered by Penny Nom.

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