iPgmr.com Amortization Calculator AMORTZcgi
Buying a house, a car, a boat, an RV? Chances are that purchase
will require a loan. How does the loan work? How much will the
purchase actually cost? How do repayment options affect the
cost of the loan? That is what an amortization schedule will
tell you. It provides a month by month accounting of the the
loan repayment and the distribution of principal and interest
for each payment.
____________________________________________________________________ Every loan comes with a number of terms and conditions. The ammortization schedule can help you see how each of these affect the repayment of the loan. SIMPLE INTEREST The amortization table is based on simple interest. That means that interest is computed as a fixed amount based on the number of days elapsed between payments. Enter the quoted interest rate and submit the request.
COMPOUNDED INTEREST
Compounded interest computes the interest each day and adds the
interest to the balance before computing the next day's interest.
APR (annual percentage rate) is higher than the quoted rate where
interest is compounded. Change the quoted interest rate to the
computed APR and resubmit the request.
BALLOON PAYMENT
A balloon payment is used to provide short term financing. The
loan is structured to make minimum payments for a period of time,
during which other financing can be arranged. The balloon
is the payment due at the end of the term and represents the
outstanding balance of principal and interest at that time.
Change the payback years to shorten the term, but leave payment
amount as computed for the full term and resubmit the request.
ACCELERATED PAYMENTS Accelerated payments are payments that are above and beyond the required monthly loan payment. Accelerated payment amounts increase the monthly principal payment and in doing so, shorten the payback period and the total interest paid over the life of the loan. Even a small amount, over a period of years, can make a significant difference in the total cost of a loan. Add $10, $20, $50, or $100 to the computed payment amount and resubmit the request. |