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380
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7-5 Amortization
This calculator can be used to calculate the principal and interest portion of a monthly
installment, the remaining principal, and amount of principal and interest repaid up to any
point.
uu
uu
u Formula
b
a
d
e
c
12 mn
a: interest portion of installment PM1 (INT )
b: principal portion of installment PM1 (PRN)
c: balance of principal after installment PM2 (BAL)
d: total principal from installment PM1 to payment of installment PM2 (ΣPRN)
e: total interest from installment PM1 to payment of installment PM2 (ΣINT )
*a + b = one repayment (PMT )
a : INT
PM1
= I BAL
PM1–1
× i I × (PMT sign)
b : PRN
PM1
= PMT + BAL
PM1–1
× i
c : BAL
PM2
= BAL
PM2–1
+ PRN
PM2
d :
Σ
PRN = PRN
PM1
+ PRN
PM1+1
+ … + PRN
PM2
e :
Σ
INT = INT
PM1
+ INT
PM1+1
+ … + INT
PM2
PM2
PM1
PM2
PM1
BAL0 = PV (INT1 = 0 and PRN1 = PMT at beginning of installment term)
(Number of payments)
Amount of single payment
7-5-1
Amortization
380


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