P i PS = |
PS = payment size P = principal (loan amount) r = annual interest rate (a.p.r.) m = number of payments per year also the number of compounding periods per year t = time in years r i == interest rate per compounding period m n = m t = total number payments
i = 0.08/1 = 0.08 n = 5 PS = P i/(1 - (1 + i)-n) = 50,000(0.08)/(1 - (1 + 0.08)-5) = $12,522.82
Period | Payment | Interest | Payment to principal |
Outstanding principle |
---|---|---|---|---|
0 | 0 | 0 | 0 | 50000.00 |
1 | 12522.82 | 4000.00 | 8522.82 | 41477.18 |
2 | 12522.82 | 3318.17 | 9204.65 | 32272.53 |
3 | 12522.82 | 2581.80 | 9941.02 | 22331.51 |
4 | 12522.82 | 1786.52 | 10736.30 | 11595.21 |
5 | 12522.82 | 927.62 | 11595.21 | 0 |
If you do not mind waiting a few seconds press the following button to generate an amortization table. The amortization table shows how each payment is broken down into payment towards interest and payment towards the principal.
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