Amortization. Formulas Simple Interest Amortized Loan Formula.

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Presentation transcript:

Amortization

Formulas Simple Interest Amortized Loan Formula

Formulas Unpaid Balance Formula T is the number of years from the beginning of the loan to the present

Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loan for the balance at for 30 years. Find her monthly payment. Find the total interest. Prepare an amortization schedule for the first two months of the loan.

Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loan for the balance at for 30 years. 20 years have passed and Shirley wants to pay off the balance on her house. If there is no pre- payment penalty, what will it cost for Shirley to pay off the unpaid balance of her home loan?