7

It will most likely be $2,380. This will depend on the specifics of your mortgage contract, but the monthly payment generally won't automatically change in this situation. If you're paying off such a substantial portion of the outstanding balance, you may want to look at refinancing the loan entirely to get a lower interest rate and/or lower monthly ...


7

Their examples adequately demonstrate the difference between partially amortized and fully amortized loans, especially since it's in the context of commercial lending, where 30-year terms are uncommon. The point is, if the amortization period is longer than the term then you have a partially amortized loan (balloon payment due at end), and if the ...


5

Yes, about 5% With monthly rate r and principal s = 511200 payments d = 9628 no. months n = 5*12 Equating net present values Solving for r s = (d - d (1 + r)^-n)/r ∴ r = 0.00409911 Nominal interest compounded monthly is 12*r = 4.91893 % Effective annual interest is (1 + r)^12 - 1 = 5.03136 % The former is APR in the US and the latter is APR in ...


4

My calculation ended up with quite exactly 5.04%, using the rules that would be applied in Europe. This is how APR would be calculated: You start with 511,200. Every month, 9,628 is subtracted from your debt (and no interest added at this point). Then, after twelve months, the interest is calculated. You owed 511,200 for the first month, 501572 for the ...


4

Excel and LibreOffice Calc have a function for this: RATE(). Running your numbers through it says that the rate is 4.92%.


2

Here is a small model example. Consider a loan with Principal, P = 1000 Nominal interest, i = 10% compounded monthly Number of periods, n = 36 months The monthly rate, r = i/12 = 10/100/12 = 0.00833333 The equated monthly instalment, EMI = (P r (1 + r)^n)/((1 + r)^n - 1) = 32.2672 If the interest rate is reduced the EMI or the number of periods to repay ...


2

Your second method is correct, you're just missing the compounding of the first month's interest when calculating the second month's interest: Interest Accrued for 1 month = 500,000 *.1 / 12 = 4166.67 V--- includes interest from first month Interest Accrued for 14 days = 504,166 *.1 * 14 / 365 ...


2

Decades ago in the United Sates is wasn't unusual to see these types of home mortgages. The mortgage amount was much lower back in the 1970's and 1980's, but at the time interest rates were very high. The advantage of the mortgage with the balloon payment in 7 or 10 years was that the risk for the bank was lower. The borrower has to either sell the house, ...


2

500000 ((1 + 0.1/2)^(1/6) - 1) = 4082.42 Canadian mortgages are compounded twice yearly. The interest rate, 10% is a nominal rate compounded semi-annually. That is a lower rate than 10% nominal compounded monthly. As you can see in the table here: Effective interest rate calculation 10% nominal compounded semi-annually = 100 ((1 + 0.1/2)^2 - 1) = ...


2

These are some great answers & I don't want to take away from the detail they provide, but I saw in a comment you mentioned you were looking for a Google Sheets solution for this. An easy Google Sheets solution for cumulative principal paid is to use the =CUMPRINC function. Example: $500,000 loan, 5% interest, 20 year term, determine the cumulative ...


1

Yes, there's a formula, but it's kind of complicated. The formula is: b=P*(r+1)^n-m*((r+1)^n-1)/r where: n is the number of months (assuming monthly payments) r is the monthly interest rate, expressed as a decimal, e.g. 2% is .02 P is the initial loan amount m is the monthly payment b is the balance after n months Oh, and I'm using "computer notation"...


1

I’m not aware of any loan product that has interest calculated on actual days in a month. If they did that you would have 4 different interest amounts, one for each month that has 31,30,29, and 28 days. Of course as soon as I say that someone will point out a case where it happens. If it did exist yes the interest amount and likely payments would be ...


1

Given s = principal r = periodic rate d = periodic payment the balance b remaining in month x is b = (d + (1 + r)^x (r s - d))/r Applying your figures s = 5000 r = 5.0/100/12 d = 300 x = 3 b = (d + (1 + r)^x (r s - d))/r = 4159.01 Starting value, three months back x = 0 b = (d + (1 + r)^x (r s - d))/r = 5000 Or, in your code $Int = (5.0/100)/12; $...


1

You say the current balance is $295,000. So let's say you're 2 months in. Solving for the interest rate with s = principal d = payment n = number of months s = 295000 d = 2400 n = 30*12 - 2 = 358 s = (d - d (1 + r)^-n)/r ∴ r = 0.00759326 ∴ effective annual rate = (1 + r)^12 - 1 = 9.50225 % If you carried on with this for 4 more months the balance ...


1

There are a few ways that a missed payment disadvantages the lender: not getting the amount (addressed by the period 6 catch-up payment); opportunity cost due to not being able to use the amount (addressed by the interest component of a late fee); hassles of having to make alternate arrangements if the lender was relying on the income to make their own ...


1

Do not take the $1000 dollars off of equity. The cost of the laptop has already been taken from equity in the form of reducing (retained) earnings through the Expenses:Amortization account. The $1000 in the Current Assets account is balanced by the $1000 in the Accumulated Amortization contra-account. They should be taken off together and result in no ...


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