Questions tagged [amortization]
any question related to the amortization of loan. Also refered to as EMI or repayment schedule
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Amortization of patent when useful life exceeds legal life [closed]
Say that "Juan" has a patent with a legal life of ten years. However, because the patent applies to an extremely niche area with no competitors, he estimates that its actual useful life is ...
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How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?
Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P ...
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How to solve amortization schedule where 10% of the interest is paid back on 4th payment
I am trying to find an algorithm to solve this amortization schedule:
P = 1000, term = 12 months, Interest=5%, calculation based on actual/365.
10% of the total interest of the loan is added to the ...
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How to prepare constant annuity amortization table for a simple interest loan?
My company (in which I work) offers a home loan of ₹60,00,000 with simple interest. It is written in terms and conditions of this loan that principal shall be repaid in not more than 225 monthly ...
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How is the time saved calculated if you do an overpayment on a mortgage to reduce the term?
I would like to know the equation to work out how much money is saved if you make an overpayment on a mortgage to reduce the term.
There is a promotional rate for the interest, and a standard variable ...
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How does paying extra on my mortgage affect my amortization schedule?
I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
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Are there any amortized home mortgage loans where the monthly payments are distributed equally between interest and principal?
Are there any type of home mortgage loans where the amortized monthly payments are equally distributed towards the interest and principal? I understand this would violate the current formulas used to ...
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Why aren’t amortized loans outlawed and replaced with a more equitable model to the borrower?
I completely understand that banks are in the business of making money and capitalism prioritizes profit above all other values. However why aren’t laws enacted that would ban amortized loans and ...
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If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?
So, from what I understand:
APR: rate advertised to borrowers (without compounding)
APY: rate advertised to lenders (with compounding)
So, for a loan with APR of 6%, that compounds monthly:
APY = (...
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Interest only mortgage with extra payment towards principal
I am planning to take 30 year term 10 year interest only mortgage. I know following are pros can cons of this approach:
Pros:
possible free money, especially given low interest rates
lower payments (...
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Additional principal payment split between interest and principal [duplicate]
I made an additional payment with my first mortgage payment but I noticed that although I designated the additional payment, say $10, as principal the remaining principal balance didn't go down by the ...
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Creating an amortization schedule for a loan with variable interest that compounds 2x per year
Has anyone created an amortization schedule for a loan with a variable interest rate that also compounds 2x per year?
The loan has a set payment amount (15k monthly), but because the interest is ...
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How do I calculate the principal paid down on a mortgage?
I'm looking for an equation to find out the current principal on a mortgage. I have the following variables:
n periods
monthly payment amount
interest rate of mortgage
I'd like to know how much I'd ...
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How can I calculate amortized payment when the payments are made in advance?
I'm trying to calculate the payment amount on an amortized loan with interest where the payments are made in advance.
If the payments are made in arrears there's a simple formula, but since the first ...
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Formula for calculating a reamortization
So my friend recently recasted/reamortized a loan. Initially, they had a principal loan balance of $13,000 at an interest rate of 5.99% over 7 years (84 months). They verified the loan company's ...
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