Amortization
15-5 Amortization
Amortization lets you calculate the interest and principal portions of a payment or payments.
Amortization FieldsThe following fields appear on the Amortization calculation page.
Field | Description |
PM1 | Number of first installment period in interval under consideration |
PM2 | Number of last installment period in interval under consideration |
I% | Annual interest rate (as a percent) |
PV | Present value (initial investment) |
PMT | Amount paid each period |
P/Y | Number of installment periods per year |
C/Y | Number of times interest is compounded per year |
BAL | Balance of principal after PM2 |
INT | Interest portion of PM1 |
PRN | Principal portion of PM1 |
sumINT | Total interest paid from PM1 to PM2 (inclusive) |
sumPRN | Total principal paid from PM1 to PM2 (inclusive) |
Financial Application Default Setup for Examples
You can use the [Format] tab to change the following setting.
Payment Date: End of period
Important!
•The calculation for Example 1 is performed using a Compound Interest page. The payment result you obtain here will be used for the Amortization page calculations in Example 2.
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