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| *Loan,banking and credit>>>loan calculator |
With a standard calculator how do i work out capital & interest payments on mortgage/loan? |
With a standard calculator how do i work out capital & interest payments on mortgage/loan? Using a 'good' calculator available at many web sites. Ensure that it also calculates the amortisation table too; this gives you the relationship between capital and interest for each year of your loan. the formula is too complicated to do on a standard calculator you would be best going on to any banks website and using their mortgage calculation tools they are free and you do not have to give your details if you are really mad here is a formula Step 1: First, the Annual Interest Rate (5%) must be adjusted to a periodic rate in decimal form. (In this case, quarterly) This is done because the payment should include only that portion of the annual interest applicable to the period. To calculate the quarterly rate in decimal form, use the formula: j (quarterly interest in decimal form) = Annual Interest Rate/(4 脳 100) The annual interest rate is 5 %. Put this value in the formula.: Step 1 Solution: j (Quarterly interest in decimal form) = 5/ (4 脳 100) = .0125 Step 2: Calculate the number of quarters the mortgage is to be repaid. To calculate the number of quarters it takes to repay the mortgage, use the formula: n (number of quarters for repayment) = l (Length, in years, of the mortgage) 脳 4 Step 2 Solution: n (Number of quarters for repayment) = 2 脳 4= 8 Step 3: Calculate the discount factor. Write the formula. D = (1 + j)n - 1 j( 1 + j)n Step 4: Substitute .0125 for j and 8 for n. D = (1 + .0125)8 - 1 .0125( 1 + .0125)8 Step 5: Solve D = (1.0125)(1.0125)(1.0125)(1.012... - 1 .0125 (1.0125)(1.0125)(1.0125)(1.012... D = .1044861 .0138060 D = 7.56816 Step 6: Now calculate the loan payment amount. Write the formula. P = A D Step 7: Substitute $10,000 for A and 7.56816 for D. P = $ 10,000 7.56816 Step 8: Solve P = $1,321.33 Dunno |
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