An amortization schedule, in general, is a report of loan or mortgage payments. This report includes the payment number, date, amount, breakdown of important and interest and the remaining balance owed after the payment. Here is an example on how an amortization schedule is calculated.
Let's say a person has been loaned ,000 from a lender. The annual interest rate (Air) is 12% with a payment of 0 each month to the lender. Twelve percent per year is one percent per month. The lender gives him the ,000 on June 15th - the strengthen date; and one month later (July 15th), the first monthly payment is due.
originate An Amortization schedule
The lender multiplies the monthly interest factor times the excellent balance and the interest owed for the first month is 0.00 (.12 x 10,000/12), which is done at the end of the month. 0 of the monthly payment is applied towards the important and the balance owed to the Lender. This is done immediately after the borrower gives the lender the 0 payment and balanced owed is ,750.00.
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