User Manual

20060301

15-5-1

Amortization

15-5 Amortization

Amortization lets you calculate the interest and principal portions of a payment or payments.

Amortization Fields

The 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

% 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.