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    lizsublime's Avatar
    lizsublime Posts: 8, Reputation: 1
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    #1

    Jan 23, 2008, 08:18 PM
    Amortizing Loan
    Amortizing Loan. Consider a 4-year amortizing loan. You borrow $1,000 initially, and repay
    It in four equal annual year-end payments.
    Fastfun1's Avatar
    Fastfun1 Posts: 80, Reputation: 11
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    #2

    Jan 26, 2008, 08:15 PM
    Sorry, Liz. I'm not sure what exactly your question is, nor could I answer if I knew. You are missing a major component, rate. However, assuming your annual interest rate is 5.00%, here is what your amorization schedule would look like. Hope this helps:

    Pmt Prin. Int. Prin. Int. Prin Bal
    1 232.01 50.00 232.01 50.00 767.99
    2 243.61 38.40 475.62 88.40 524.38
    3 255.79 26.22 731.41 114.62 268.59
    4 268.59 13.43 1000.00 128.05 0.00
    Fastfun1's Avatar
    Fastfun1 Posts: 80, Reputation: 11
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    #3

    Jan 26, 2008, 08:33 PM
    I'm sorry, you mentioned you want to make 4 equal payments. Simply take the total of interest paid from the amoritization schedule divide by 4 and add 1/4 of $1,000. With that being said, you'll satisfy a 4 year loan with 4 equal payments. :rolleyes:
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