Appendix B: Reference Information 638
Amortization
AmortizationAmortization
Amortization
If computing bal(), pmt2 = npmt
Let bal(0) = RND(PV)
Iterate from m = 1 to pmt2
then:
Balance, principal, and interest are dependent on the values of PMT, PV, æ, and pmt1 and
pmt2.
where: RND = round the display to the number of decimal
places selected
RND12 = round to 12 decimal places
ImRND RND12 –i bal m 1–()×()[]=
bal m() bal m 1–()Im
–RND PMT()+=
⎩
⎨
⎧
bal( ) bal pmt2()=
ΣPrn( ) bal pmt2()bal pmt1()–=
ΣInt( ) pmt2pmt1–1+()RND PMT()×ΣPrn( )–=