Tuesday

March 3, 2015

March 3, 2015

Posted by **Katelyn** on Tuesday, December 11, 2012 at 10:11pm.

- math -
**Jennifer**, Thursday, December 13, 2012 at 10:45amThe formula for calculating the payment amount is shown below.

A = P * ((r(1+r)^n)/(((1+r)^n)-1)

Simple Amortization Calculation Formula

where

A = payment Amount per period

P = initial Principal (loan amount)

r = interest rate per period

n = total number of payments or periods

A = 15000 * ((0.055(1.055)^12)/(((1.055)^12) - 1)

A = 15000 * ((0.055*1.9012)/.9012)

A = 1,740.44

Year 1, first payment: $1740.44 Interest paid = balance * 0.055 = $15000*.055 = $825

Principal paid = payment - interest = $ 1740.44 - 825 = 915.00

Balance = 15000 - 915 = 14085

Year 1, 2nd payment: $1740.44

Interest paid = balance * 0.055 = $14085*.055 = $774.68

Principal paid = payment - interest = $ 1740.44 - 774.68 = 965.76

Balance = 14085 - 965.76 = 13119

13119 is the unpaid balance after 2 payments.

**Answer this Question**

**Related Questions**

math - A $15,000 debt is to be amortized in 12 equal semiannual payments at an ...

Amoritizing Loans - "A woman borrows $6000 at 9% compounded monthly, which is to...

Computer science - Paying Off Credit Card Debt Each month, a credit card ...

computer programming - Paying Off Credit Card Debt Each month, a credit card ...

Mathematics - Construct a schedule for the amortization of: (a) a debt of $15,...

Mathematics - Construct a schedule for the amortization of: (a) a debt of $15,...

computer programming - Paying Off Credit Card Debt Each month, a credit card ...

Math - Sarah secured a bank loan of $200,000 for the purchase of a house. The ...

algebra - my scenario, to start a small business you will need a loan of $50.000...

Math 123 - carolyn borowed $125 if the interest rate is 1.5% per month on the ...