Amortization is the process of dividing a payment into the amount that applies to interest and the amount that applies to principal. Payment near the beginning of a loan contribute more interest, and less principal, than the payments near the end of a loan.
The 'Amort' key, allows to calculate :
The 'Amort' button works only if you had already keyed the necessary values in the financial registers.
To Amortize payments, enter the start period number, press 'Enter', the end period number and press 'Amort'. MyCalc2 displays in the secondary display :
To amortize a single payment enter the period number, 'Enter', the period number again and press 'Amort'.
Example : Amortizing a range of payments.
You are buying a new house with a 15 years loan at 5 % annual nominal interest, compounded monthly. The price of the house is $ 350000.
Calculate the first six months of the amortization schedule.
You key the value this way and click on the 'Payment' button :
Next, amortize the first 6 months :
'1' 'Enter' '6' 'Amort' :
The secondary display shows :
Bal : 342061.04
Int : -8667.70
Prin : -7938.96
This means that
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