Solves for either the number of payments, the payment amount, or the amount of a loan. The payment amount, interest paid, principal paid, and balance of the loan are given for a specified period.
Usage
amort.period(Loan=NA,n=NA,pmt=NA,i,ic=1,pf=1,t=1)
Arguments
Loan
loan amount
n
the number of payments/periods
pmt
value of level payments
i
nominal interest rate convertible ic times per year
ic
interest conversion frequency per year
pf
the payment frequency- number of payments per year
t
the specified period for which the payment amount, interest paid, principal paid, and loan balance are solved for
Value
Details
Effective Rate of Interest: $eff.i=(1+\frac{i}{ic})^{ic}-1$
$j=(1+eff.i)^{\frac{1}{pf}}-1$
$Loan=pmt*{a_{\left. {\overline {\, n \,}}\! \right |j}}$
Balance at the end of period t: $B_t=pmt*{a_{\left. {\overline {\, n-t \,}}\! \right |j}}$
Interest paid at the end of period t: $i_t=B_{t-1}*j$
Principal paid at the end of period t: $p_t=pmt-i_t$