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  • Loan Amortization Calculator & Schedule Explained

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    Yogashini
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    This document contains information about loan amortization and future value of money calculations. It provides an example amortization schedule showing the beginning balance, monthly payment, interest paid, principal paid, and ending balance over the first three months of a loan. It also gives an example calculation of determining the future value of an annuity of $5,000 per year for 15 years at an interest rate of 8% and comparing it to a lump sum present value amount.

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    This document contains information about loan amortization and future value of money calculations. It provides an example amortization schedule showing the beginning balance, monthly payment, interest paid, principal paid, and ending balance over the first three months of a loan. It also gives an example calculation of determining the future value of an annuity of $5,000 per year for 15 years at an interest rate of 8% and comparing it to a lump sum present value amount.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    30 views2 pages

    Loan Amortization Calculator & Schedule Explained

    Uploaded by

    Yogashini
    This document contains information about loan amortization and future value of money calculations. It provides an example amortization schedule showing the beginning balance, monthly payment, interest paid, principal paid, and ending balance over the first three months of a loan. It also gives an example calculation of determining the future value of an annuity of $5,000 per year for 15 years at an interest rate of 8% and comparing it to a lump sum present value amount.

    Copyright:

    © All Rights Reserved
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    of 2

    LOAN AMORTIZATION

    EXAMPLE :

    MONTHS BEGINNING BALANCE MONTHLY PAYMENT INTEREST PAID


    1 100,000 477.42 133.33
    2 99,655.91 477.42 132.87
    3 99,311.37 477.42 132.42

    CHAPTER 8
    EXAMPLE 1:

    (a) A bank offers you RM 60,000 now in exchange for annual payments of RM 5,000 that you are expected to
    receive for a legal settlement over the next 15 years. What would be the future value of money at 8 percent,
    would you accept this offer?

    FVOA = 135760.57
    SINGLE PAYMENT : PV= 42797.39
    PRINCIPAL PAID ENDING BALANCE
    344.09 99,655.91
    344.55 99,311.37
    345.00 98,966.36

    u are expected to
    ney at 8 percent,

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