Sunday, June 17, 2007

How to calculate amortization using BA II Plus




Source: http://cfa.minute-class.com
Assume in a house mortgage, you apply for a loan of $500,000 with monthly payment at 6.8% APR for 30 years. How much do you have to pay in the first month of the first year much is for interest and principle? How about for the first month of 10th year and the last month?

So, the monthly payment is $3259.6.

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