this is the loan amortization chart .how do I find out what 30 years at 5% is? A
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this is the loan amortization chart .how do I find out what 30 years at 5% is?
Amortization Chart (Table 15.1) (Partial) (Mortgage principal and interest per $1,000) Terms 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% in years 10.86 11.11 11.36 11.62 11.88 12.14 2.40 9.51 9.76 10.02 10.29 10.56 10.83 11.39 8. 18 7.56 8.44 8.72 7.84 8.12 6.88 7.17 7.46 8.99 8.40 7.76 9.28 8.69 8.06 9.56 8.99 9.29 9.59 8.37 9.85 8.68 9.00 6.51 6.82 7.13 7.44 7.75 8.07 8.39 8.72 6.15 5.68 6.45 6.76 6.00 6.33 5.71 6.05 7.39 7.72 8.06 8.40 7.00 6.75 25 7.07 7.69 7.47 8.05 7.84 5.38 6.39 7.11Explanation / Answer
For 5%, you have to refer to the table prior to this page. This table starts with 5.50%.
What is loan amortization? ............ this is very simple, monthly payment that we have to make for a period of 360 months ( 30 years * 12 months ) in order to payback the loan amount to lender including the interest.
You can use this following simple formula to compute such loan amortization amount for a loan of $ 1000.
PVIFA = Present value of Interest factor annuity = [ 1 - ( 1 +r)-n ] / r
Here r = 0.05 / 12 ........... i.e 5% annual and converted to monthly
n = 360
= [ 1 - ( 1.00416667) -360 ] / 0.00416667 = 186.281617
So loan amortization amount = Principle / PVIFA
= 1000 / 186.281617
= $ 5.37 for each month for 360 months to payback your loan of 1000
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