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Text File | 1989-11-22 | 91.0 KB | 2,212 lines |
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- 1 - FEATURES
-
-
- The Antelope Systems Loan Amortization Package was designed to make quick and
- accurate Loan Calculations and Amortization Schedules available to the
- individual and professional user at a reasonable price. Yet this package
- provides many of the same features and capabilities available in the more
- expensive packages, while also handling larger numbers and running faster than
- many of them.
-
- Following is a list of some of the major features of the Antelope Amortization
- Package:
-
- * Handles Principal and Payment Amounts of up to 13 digits
- (11 to the left and 2 to the right of the decimal point)
-
- * Provides Interest Rate accuracy up to 8 digits
- (3 to the left and 5 to the right of the decimal point)
-
- * Allows for Fiscal Year End Totals
-
- * Calculates the unknown variable from among the following when the other
- three values are known:
- - Original Principal
- - Payment Amount
- - Interest Rate
- - Number of Payments
-
- * Handles various payment intervals
- - Monthly
- - Quarterly
- - Semiannual
- - Annual
-
- * Outputs Amortization Schedules to any of the following:
- - Screen
- - Printer
- - ASCII file on floppy or hard disk
-
- * Accommodates the following:
- - Balloon Payments
- - Interest Only loans
- - Interest Free loans
- - Fixed Principal Payment
- - Adjustable Rate Mortgages
- - Additional Payments
- - Negatively Amortizing loans
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- 2 - INSTALLATION
-
-
- The Antelope Amortization package can be installed to run from either a floppy
- diskette or a hard disk drive. Just follow the steps for the procedure that
- applies to your system.
-
- FLOPPY DISKETTE INSTALLATION WITH ONE DRIVE
-
- STEP 1: Insert your DOS diskette into the diskette drive. At the A> prompt,
- type:
-
- format b:
-
- When the message "Insert new diskette for drive B:" appears, remove
- the DOS diskette and place a blank diskette in the drive. Press the
- ENTER key.
-
- When the message "Format another (Y/N)?" appears, enter "N".
- Remove the diskette from the drive and label it "AMORTIZATION".
-
- STEP 2: Insert the master Antelope Amortization diskette into the drive. At
- the A> prompt, type:
-
- copy a:*.* b:
-
- When the message "Insert diskette for drive A:" appears, press the
- ENTER key.
-
- When the message "Insert diskette for drive B:" appears, remove the
- master Antelope Amortization diskette from the drive and insert new
- "AMORTIZATION" diskette and press the ENTER key.
-
- When the message "Insert diskette for drive A:" appears again, remove
- the "AMORTIZATION" diskette and insert the master Antelope Amortization
- diskette again.
-
- Keep exchanging diskettes as prompted until the message "n files
- copied" appears and the A> prompt returns.
-
- The diskette labeled "AMORTIZATION" is now the one you should use for running
- the amortization program. The master Antelope Amortization diskette is your
- backup copy.
-
-
- FLOPPY DISKETTE INSTALLATION WITH TWO DRIVES
-
- STEP 1: Insert your DOS diskette into the diskette drive A. Insert a blank
- diskette into drive B. At the A> prompt type:
-
- format b:
-
- When the message "Format another (Y/N)?" appears, enter "N".
-
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- 2
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- STEP 2: Remove your DOS diskette and insert the master Antelope Amortization
- diskette into drive A. At the A> prompt type:
-
- copy a:*.* b:
-
- When the message "n files copied" appears and the A> prompt returns,
- remove the diskettes.
-
- The diskette labeled "AMORTIZATION" is now the one you should use for running
- the amortization program. The master Antelope Amortization diskette is your
- backup copy.
-
-
- HARD DISK INSTALLATION
-
- STEP 1: Create a subdirectory for the Antelope Amortization package on your
- hard disk by typing the following command at the C> prompt:
-
- md \amort
-
- STEP 2: Change to the new directory by typing the following command at the C>
- prompt:
-
- cd \amort
-
- STEP 3: Insert the master Antelope Amortization diskette into drive A. At
- the C> prompt type:
-
- copy a:*.*
-
- When the message "n files copied" appears and the C> prompt returns,
- remove the diskettes.
-
- You can now run the Antelope Amortization program from your hard disk
- subdirectory \AMORT. The master Antelope Amortization diskette is your backup
- copy.
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- 3 - SCREEN AND KEY USAGE
-
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- STARTING FROM A FLOPPY DISKETTE
-
- To start the Antelope Amortization program from a floppy diskette, place your
- AMORTIZATION diskette, created during the installation steps, into drive A.
- At the A> prompt type:
-
- amort
-
- Then press the ENTER key.
-
-
- STARTING FROM A HARD DISK
-
- To start the Antelope Amortization program from your hard disk, first change to
- the /AMORT subdirectory by typing the following command at the C> prompt:
-
- cd \amort
-
- Press the ENTER key and then at the prompt type:
-
- amort
-
- Then press the ENTER key.
-
-
- LOAN INPUT SCREEN
-
- When you start up the Antelope Amortization program, the first thing you will
- see is the Copyright Notice Screen. After about one second, the Loan Input
- Screen will appear. You enter the information for loan you wish to calculate by
- filling in the fields on the Loan Input Screen.
-
- MONOCHROME MODE
-
- If you are using a Monochrome Monitor, press Function Key F5 while the first
- field on the screen, the Loan Title Field, is being highlighted. This will put
- the display into Monochrome Mode for proper display on a Monochrome Screen. You
- may also use this option with a Color Monitor to produce a Black and White
- display. Pressing F5 a second time will return the display to Color Mode. The
- mode may only be changed while the Loan Title Field is being highlighted.
- Changing the mode will clear all fields.
-
- LOAN TITLE FIELD
-
- The Loan Title Field can be used to enter a Description for the loan that will
- appear in the heading of the Amortization Schedule. The Description can be up
- to 45 characters in length. It will be centered in the heading. All
- Alphabetic, Numeric, and Special Characters may be used. An example might be:
- "Home Mortgage Loan for John Jones".
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- 4
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- DATE OF LOAN FIELD
-
- The Date of Loan Field initially contains the Current Date as obtained from your
- computer. This date will be printed in the Heading of the Amortization Schedule
- as the date the loan was made. It is also used to calculate the payment due
- dates on the schedule. If the loan was made on other than the current date, you
- may change the date to be the Actual Loan Date. The format of this field must
- be of the form "11/21/1990". Only Numeric Characters and Slashes are allowed.
- Invalid dates such as "02/30/1991" will not be allowed. However, dates entered
- in several other formats such as "05-06-1992", "05 06 1992", "5/6/1992", or
- "05/06/92" will be recognized and accepted and then redisplayed in standard
- format. If the format is not recognized, the editor will "BEEP" you, and you
- must rekey.
-
- SUBTOTAL MONTH FIELD
-
- The Subtotal Month (SUBT MO) indicates the month after which Annual Subtotals
- will be printed. It is initially set to "12" so that subtotals will appear at
- the end of each Calendar Year. If you wish Annual Subtotals to be taken after a
- different month, you may change this field to any month from "01" to "12". For
- example, if you need the subtotals at the end of your Fiscal Year which ends on
- June 30th, then enter "06".
-
- PRINCIPAL AMOUNT FIELD
-
- The Principal Amount Field is where you will enter the Total Amount of the Loan.
- This will be the Original Balance before the first payment is made. The field
- must be numeric. Commas are optional. A decimal point may be used. After the
- program edits your entry, it will be redisplayed in a standard format. Up to 13
- numeric digits (including both dollars and cents) may be entered.
-
- INTEREST RATE FIELD
-
- The Interest Rate Field is used to enter the Annual Interest Rate to be paid by
- the borrower to the lender for use of the money. The program will use this
- annual rate to compute the actual rate to be applied to each payment period.
- The field must be numeric with a decimal point allowed. Up to 8 numeric digits
- may be entered (including 3 digits to the left and 5 to the right of the decimal
- point).
-
- FREQUENCY OF PAYMENTS FIELD
-
- The Frequency of Payments Field allows you to enter the Payment Schedule Option,
- that is whether the payments will be made Monthly, Quarterly, Semiannually, or
- Annually. Enter "M" for Monthly, "Q" for Quarterly, "S" for Semiannual, or "A"
- for Annual Payments.
-
- NUMBER OF PAYMENTS FIELD
-
- The Number of Payments Field is where you enter the Total Number of Payments to
- be made over the life of the loan. For example, if payments are to be made
- monthly for 10 years, then enter 120 in this field (10 years times 12 months per
- year). The field must be numeric, and may contain up to 4 digits.
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- PAYMENT AMOUNT FIELD
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- The Payment Amount Field is used to enter the Exact Amount of the Periodic
- Payment. The field must be numeric with a decimal point allowed. This field
- will commonly be left blank to allow the program to calculate the Exact Payment
- Amount (see "Solving for Payment Amount" in chapter 4).
-
- OUTPUT OPTION FIELD
-
- The Output Option Field is used to indicate whether the Amortization Schedule is
- to be displayed on the Screen, printed on your Printer, or output to an ASCII
- File on your Hard Disk or a Floppy Diskette. Enter "S" for Screen Display, "P"
- for Printer, or "D" for Disk ASCII File output.
-
- DISK FILE NAME FIELD
-
- This message appears when the "D" option is selection to the Output Option
- Field. A default File Name is displayed in the reply field. You may either
- select the default by pressing ENTER, or overtype a new name into the field.
- Disk and Directory names may be used, for example, "C:\AMORT\JONES.LN1". The
- Amortization Schedule will be output to the file indicated. The DOS rules for
- File Names must be followed.
-
- SCREEN VERIFICATION FIELD
-
- After the Output Option Field has been entered, the message "ARE ALL ENTRIES
- CORRECT? (Y/N)" appears at the bottom of the screen. If you reply "Y", the
- program assumes all entries are correct and proceeds with outputting the
- Amortization Schedule. If you reply "N" or just press ENTER, the cursor is
- returned to the top of the Loan Input Screen to allow corrections.
-
- HELP SCREEN
-
- The Help Screen provides information on the Individual Fields of the Loan Input
- Screen as well as information on Key Usage. To obtain information on a
- particular field, use the Arrows to move the cursor to that field, then press
- the Function Key F1. The Help Screen will display information on the field
- selected and also provide a Menu of selections at the bottom of the screen for
- selecting information on the functions of the available Keys. Pressing F1 again
- will cause information to be displayed on the Highlighted Field in the Menu.
- You may use the Enter Key and the Up and Down Arrows to change the selected
- field. Use the Escape Key to return to the Loan Input Screen.
-
- KEY USAGE
-
- Any of the Alphabetic Keys (Upper and Lower Case), Numeric Keys, and Special
- Character Keys may be used when entering data into an Alphanumeric field (Loan
- Title). For the Numeric fields (Principal Amount, Interest Rate, Payment
- Amount, and Number of Payments), only the Numeric Keys (0123456789) and a few
- Special Character Keys ($%+,-.) will be allowed. If any other key is struck,
- the editor will "BEEP" you, and you must rekey. For the Date Field, you may
- enter only the numeric characters and the special characters "/" and "-". For
- the fields which request you to select a Single Character Definite Response to a
- multiple choice selection (Frequency of Payments, Output Option, Screen
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- Verification), only those characters in the selection may be entered. However,
- either Upper or Lower Case may be used. For the Subtotal Month Field, only
- numeric keystrokes will be accepted. The Disk File Name Field will accept all
- characters, but the DOS rules for File Names must be followed. After you have
- entered a Numeric field, the editor will reformat it into a Standard Numeric
- Format using commas and a decimal point. Single Character Response Fields will
- be changed to Upper Case.
-
- There are also several Special Keys which you may use to aid you the entering of
- data. Following is a description of those keys and their special functions.
-
- UP ARROW KEY
-
- This key will cause the cursor to move to the preceding field on the Loan Input
- Screen. Normally that will be on the entry line above the current position.
- Use this to go back and change a field already entered or skipped. In the Help
- Screen, it will cause the Hightlighting of the preceding Menu Field for
- selecting further help.
-
- DOWN ARROW KEY
-
- This key will cause the cursor to move down to the next field on the Loan Input
- Screen. Normally that will be on the entry line below the current position.
- Use this to skip a field or to move on to the next field after a field has been
- entered. In the Help Screen, it will cause the Highlighting of the next Menu
- Field for selecting further help.
-
- HOME KEY
-
- The Home Key will position the cursor at the beginning of the current field, not
- where previously entered data begins, but at the actual beginning of the field.
-
- END KEY
-
- The End Key will position the cursor at the end of the data in the current
- field.
-
- INSERT KEY
-
- Pressing this key will turn on Insert Mode, which allows you to insert
- characters in the middle of previously entered data. The characters entered
- will be inserted at the cursor position and existing characters on and to the
- right of the cursor will be shifted to the right. When Insert Mode is on, the
- Cursor will be displayed with increased height. Pressing the Insert key a
- second time turns off Insert Mode. When Insert Mode is off, you are in Overtype
- Mode. Overtype Mode is automatically on when you first enter a field. Overtype
- Mode allows you to overwrite previously entered data.
-
- DELETE KEY
-
- Use this key to delete data one character at a time. Each time the key is
- pressed, the character at the cursor is deleted all characters to the right of
- the cursor are shifted to the left.
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- TAB KEY
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- Pressing the Tab key will erase all data in the current field. You may use this
- key to clear a field before reentering data.
-
- F1 KEY
-
- Pressing the Function Key F1 will cause help information to be displayed for the
- field in which the cursor is positioned. If the Help Screen is already being
- displayed, pressing F1 will cause help information to be displayed for the field
- that is highlighted at the bottom of the screen.
-
- F2 KEY
-
- Pressing the Function Key F2 while the cursor is in the Payment Amount Field has
- the same effect as the Enter Key except that the amount will be interpreted as a
- Fixed Payment to Principal instead of a Total Payment Amount. Placing the
- cursor back in the field and pressing F2 a second time will release the option.
- A "P" displays to the right of the field when the option is in effect.
-
- F3 KEY
-
- Use the F3 Function Key to copy information from the Previously Entered Loan to
- the fields of the Current Loan Input Screen. Only the field in which the cursor
- is positioned will be updated.
-
- F4 KEY
-
- Use the F4 Function Key to put a Hold on the Zero value in a field so as to
- prevent the program from calculating a new value for the field. Pressing F4 a
- second time will release the Hold. An "H" appears to the right of the field
- when a hold is in effect.
-
- ENTER/RETURN KEY
-
- Pressing the Enter/Return Key causes the field just entered to be accepted and
- edited by the program. If no errors are found in the edit, the cursor is moved
- down to the next field on the Loan Entry Screen. If an edit error is detected,
- you will hear a BEEP and the cursor will remain in the current field awaiting
- your correction. In the Help Screen, the Enter Key will cause the Highlighting
- of the next Menu Field for selection further help.
-
- ESCAPE KEY
-
- When pressed while in the Help Screen or while an Amortization Schedule is being
- displayed, the Escape Key will return you to the Loan Input Screen immediately.
- If pressed while the Loan Input Screen is being displayed, the Escape Key will
- end the session and return you to DOS. Use this key for normal program
- termination.
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- 4 - COMPUTING LOANS
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- Computing Loans and producing Amortization Schedules with the Antelope
- Amortization Program is easy and straightforward. The program can find the
- value of any one of the four Numeric Variables (Initial Principal Amount,
- Interest Rate, Number of Payments, and Payment Amount) when the other three
- values are known. The following examples will illustrate this.
-
- You might wish to actually input some of these examples into the Antelope
- Amortization Program in order to familiarize yourself with its use. Start the
- program by entering "AMORT" (see chapter 3 for details). The Loan Input Screen
- will then appear.
-
- FINDING THE PAYMENT AMOUNT
-
- Suppose you have just purchased a home financed with a loan from the bank in the
- amount of $65,000. The annual interest rate is 11.0% The loan will be paid off
- over 30 years in monthly installments. How much will each payment be?
-
- Enter the information on the Loan Input Screen as follows:
-
- LOAN TITLE: Home Mortgage Loan
- DATE OF LOAN: 10/06/1991 SUBT MO: 12
- PRINCIPAL AMOUNT: 65,000.00
- INTEREST RATE: 11.0%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M (for monthly)
- NUMBER OF PAYMENTS: 360 (for 30 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S (for output to screen)
-
- Notice that Payment Amount has been left blank. When you initially pass over
- this field by pressing Enter or the Down Arrow without having entered data,
- the program will place "0.00" in the field. After you have entered "S" in the
- Output Option field and pressed Enter, the program will compute the following:
-
- PAYMENT AMOUNT: 619.01
-
- So the amount of the monthly payments has been found. Also the Screen
- Verification message now appears at the bottom of the screen:
-
- ARE ALL ENTRIES CORRECT? (Y/N)
-
- To display the Amortization Schedule for this loan, type "Y" and press Enter.
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- Following are the first and last year of the schedule generated:
-
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- AMORTIZATION SCHEDULE
- Home Mortgage Loan Page 1
- $65,000.00 loan on 10/06/1991 at 11% for 360 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 11/06/91 619.01 595.83 23.18 64,976.82
- 2 12/06/91 619.01 595.62 23.39 64,953.43
- --------------- -------------- ---------------
- ANNUAL TOTAL 1,238.02 1,191.45 46.57
- --------------- -------------- ---------------
- 3 01/06/92 619.01 595.41 23.60 64,929.83
- 4 02/06/92 619.01 595.19 23.82 64,906.01
- 5 03/06/92 619.01 594.97 24.04 64,881.97
- 6 04/06/92 619.01 594.75 24.26 64,857.71
- 7 05/06/92 619.01 594.53 24.48 64,833.23
- 8 06/06/92 619.01 594.30 24.71 64,808.52
- 9 07/06/92 619.01 594.08 24.93 64,783.59
- 10 08/06/92 619.01 593.85 25.16 64,758.43
- 11 09/06/92 619.01 593.62 25.39 64,733.04
- 12 10/06/92 619.01 593.39 25.62 64,707.42
-
- / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
-
- 349 11/06/20 619.01 64.21 554.80 6,449.47
- 350 12/06/20 619.01 59.12 559.89 5,889.58
- --------------- -------------- ---------------
- ANNUAL TOTAL 7,428.12 1,035.15 6,392.97
- --------------- -------------- ---------------
- 351 01/06/21 619.01 53.99 565.02 5,324.56
- 352 02/06/21 619.01 48.81 570.20 4,754.36
- 353 03/06/21 619.01 43.58 575.43 4,178.93
- 354 04/06/21 619.01 38.31 580.70 3,598.23
- 355 05/06/21 619.01 32.98 586.03 3,012.20
- 356 06/06/21 619.01 27.61 591.40 2,420.80
- 357 07/06/21 619.01 22.19 596.82 1,823.98
- 358 08/06/21 619.01 16.72 602.29 1,221.69
- 359 09/06/21 619.01 11.20 607.81 613.88
- 360 10/06/21 619.51 5.63 613.88 0.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 6,190.60 301.02 5,889.58
- --------------- -------------- ---------------
-
- TOTALS: 222,844.10 157,844.10 65,000.00
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- 10
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- Consider an automobile loan for $9,500.00 extended on 3/15/92 to be repaid in
- monthly payments over 5 years at 14% interest. How large will the payments be?
- Enter the information on the Loan Input Screen as follows:
-
- LOAN TITLE: Automobile Loan
- DATE OF LOAN: 03/15/1992 SUBT MO: 12
- PRINCIPAL AMOUNT: 9,500.00
- INTEREST RATE: 14%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M (for monthly)
- NUMBER OF PAYMENTS: 60 (for 5 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S (for output to screen)
-
- The program calculates the Payment Amount as shown below:
-
- PAYMENT AMOUNT: 221.05
-
- Reply "Y" to the Screen Verification message at the bottom of the screen to
- display the Amortization Schedule.
-
- Following is the first year of the Amortization Schedule:
-
-
- AMORTIZATION SCHEDULE
- Automobile Loan Page 1
- $9,500.00 loan on 03/15/1992 at 14% for 60 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 04/15/92 221.05 110.83 110.22 9,389.78
- 2 05/15/92 221.05 109.55 111.50 9,278.28
- 3 06/15/92 221.05 108.25 112.80 9,165.48
- 4 07/15/92 221.05 106.93 114.12 9,051.36
- 5 08/15/92 221.05 105.60 115.45 8,935.91
- 6 09/15/92 221.05 104.25 116.80 8,819.11
- 7 10/15/92 221.05 102.89 118.16 8,700.95
- 8 11/15/92 221.05 101.51 119.54 8,581.41
- 9 12/15/92 221.05 100.12 120.93 8,460.48
- --------------- -------------- ---------------
- ANNUAL TOTAL 1,989.45 949.93 1,039.52
- --------------- -------------- ---------------
- 10 01/15/93 221.05 98.71 122.34 8,338.14
- 11 02/15/93 221.05 97.28 123.77 8,214.37
- 12 03/15/93 221.05 95.83 125.22 8,089.15
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- 11
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- Suppose that financier Ronald Strump needs an additional 10 million to complete
- his latest acquisition deal. The money can be borrowed at the current prime
- rate of 9.135% and paid off over 20 years in monthly installments. The date of
- the loan will be 5/1/91. Ronald needs to know the amount of each payment and
- annual totals based on his fiscal year which ends June 30. Enter the
- information as follows:
-
- LOAN TITLE: Acquisition Loan
- DATE OF LOAN: 05/01/1991 SUBT MO: 06 (for fiscal year totals June 30)
- PRINCIPAL AMOUNT: 10,000,000.00
- INTEREST RATE: 9.135%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 240 (for 20 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Payment Amount as shown below:
-
- PAYMENT AMOUNT: 90,842.66
-
- Reply "Y" to the Screen Verification message at the bottom of the screen to
- display the Amortization Schedule. Note that the Year End Subtotals are printed
- after the month of June as a result of entering SUBT MO: 06 in the Loan Input
- Screen.
-
-
- AMORTIZATION SCHEDULE
- Acquistiton Loan Page 1
- $10,000,000.00 loan on 05/01/1991 at 9.135% for 240 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 06/01/91 90,842.66 76,125.00 14,717.66 9,985,282.34
- --------------- -------------- ---------------
- ANNUAL TOTAL 90,842.66 76,125.00 14,717.66
- --------------- -------------- ---------------
- 2 07/01/91 90,842.66 76,012.96 14,829.70 9,970,452.64
- 3 08/01/91 90,842.66 75,900.07 14,942.59 9,955,510.05
- 4 09/01/91 90,842.66 75,786.32 15,056.34 9,940,453.71
- 5 10/01/91 90,842.66 75,671.70 15,170.96 9,925,282.75
- 6 11/01/91 90,842.66 75,556.21 15,286.45 9,909,996.30
- 7 12/01/91 90,842.66 75,439.85 15,402.81 9,894,593.49
- 8 01/01/92 90,842.66 75,322.59 15,520.07 9,879,073.42
- 9 02/01/92 90,842.66 75,204.45 15,638.21 9,863,435.21
- 10 03/01/92 90,842.66 75,085.40 15,757.26 9,847,677.95
- 11 04/01/92 90,842.66 74,965.45 15,877.21 9,831,800.74
- 12 05/01/92 90,842.66 74,844.58 15,998.08 9,815,802.66
- 13 06/01/92 90,842.66 74,722.80 16,119.86 9,799,682.80
- --------------- -------------- ---------------
- ANNUAL TOTAL 1,090,111.92 904,512.38 185,599.54
- --------------- -------------- ---------------
- 14 07/01/92 90,842.66 74,600.09 16,242.57 9,783,440.23
-
-
-
-
-
- 12
-
-
-
-
-
-
-
- FINDING THE NUMBER OF PAYMENTS
-
- John has a credit card debt of $8,000.00. The interest charge is 18%. If he
- pays $250.00 a month, how long will it take him to pay it off?
-
- LOAN TITLE: Credit Card Loan
- DATE OF LOAN: 01/01/1991 SUBT MO: 12
- PRINCIPAL AMOUNT: 8,000.00
- INTEREST RATE: 18%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS:
- PAYMENT AMOUNT: 250.00
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Number of Months needed to pay off the debt:
-
- NUMBER OF PAYMENTS: 44
-
- So if John can stick to his planned payment schedule, he can have his card paid
- off in 3 years and 8 months. Reply "Y" to the Screen Verification message at
- the bottom of the screen to display the amortization schedule.
-
-
-
- AMORTIZATION SCHEDULE
- Credit Card Loan Page 1
- $8,000.00 loan on 01/01/1991 at 18% for 44 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 02/01/91 250.00 120.00 130.00 7,870.00
- 2 03/01/91 250.00 118.05 131.95 7,738.05
- 3 04/01/91 250.00 116.07 133.93 7,604.12
- 4 05/01/91 250.00 114.06 135.94 7,468.18
- 5 06/01/91 250.00 112.02 137.98 7,330.20
- 6 07/01/91 250.00 109.95 140.05 7,190.15
- 7 08/01/91 250.00 107.85 142.15 7,048.00
- 8 09/01/91 250.00 105.72 144.28 6,903.72
- 9 10/01/91 250.00 103.56 146.44 6,757.28
- 10 11/01/91 250.00 101.36 148.64 6,608.64
- 11 12/01/91 250.00 99.13 150.87 6,457.77
- --------------- -------------- ---------------
- ANNUAL TOTAL 2,750.00 1,207.77 1,542.23
- --------------- -------------- ---------------
- 12 01/01/92 250.00 96.87 153.13 6,304.64
-
-
-
-
-
-
-
-
-
-
-
-
- 13
-
-
-
-
-
-
-
- FINDING THE INITIAL PRINCIPAL AMOUNT
-
- Fred is considering buying a business. He can see from the seller's financial
- statements that he has been making payments of $627.86 a month to pay off a 5
- year business loan at 9.35% interest. Fred would like to quickly know what was
- the Original Amount of that loan.
-
- LOAN TITLE: Business Loan
- DATE OF LOAN: 02/01/1988 SUBT MO: 12
- PRINCIPAL AMOUNT:
- INTEREST RATE: 9.35%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 60
- PAYMENT AMOUNT: 627.86
- OUTPUT OPTION (S/P/D): S
-
-
- The program calculates Initial Principal Amount of the loan:
-
- PRINCIPAL AMOUNT: 30,000.05
-
- This is the exact figure that corresponds to the three given quantities.
- However, since all payment amounts must be rounded to the nearest cent, the
- final payment being adjusted to compensate for such rounding, the actual amount
- of the loan was probably an even $30,000.00.
-
-
-
- AMORTIZATION SCHEDULE
- Business Loan Page 1
- $30,000.05 loan on 02/01/1988 at 9.35% for 60 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 03/01/88 627.86 233.75 394.11 29,605.94
- 2 04/01/88 627.86 230.68 397.18 29,208.76
- 3 05/01/88 627.86 227.58 400.28 28,808.48
- 4 06/01/88 627.86 224.47 403.39 28,405.09
- 5 07/01/88 627.86 221.32 406.54 27,998.55
- 6 08/01/88 627.86 218.16 409.70 27,588.85
- 7 09/01/88 627.86 214.96 412.90 27,175.95
- 8 10/01/88 627.86 211.75 416.11 26,759.84
- 9 11/01/88 627.86 208.50 419.36 26,340.48
- 10 12/01/88 627.86 205.24 422.62 25,917.86
- --------------- -------------- ---------------
- ANNUAL TOTAL 6,278.60 2,196.41 4,082.19
- --------------- -------------- ---------------
- 11 01/01/89 627.86 201.94 425.92 25,491.94
- 12 02/01/89 627.86 198.62 429.24 25,062.70
-
-
-
-
-
-
-
-
- 14
-
-
-
-
-
-
-
- FINDING THE INTEREST RATE
-
- Mary is considering buying a major appliance. She has been told that her
- appliance is $749.95. Mary would like to know what Interest Rate she would be
- payments would be $26.00 a month for 36 months. The total price of the
- paying.
-
- LOAN TITLE: Appliance Loan
- DATE OF LOAN: 10/01/1991 SUBT MO: 12
- PRINCIPAL AMOUNT: 749.95
- INTEREST RATE:
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 36
- PAYMENT AMOUNT: 26.00
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Interest Rate being paid:
-
- INTEREST RATE: 15.00745
-
- This is the exact figure up to the maximum digits available corresponding to the
- three given quantities. Since payment amounts must be rounded to the nearest
- cent, the final payment being adjusted to compensate for such rounding, the
- actual Interest Rate is probably an even 15%.
-
-
-
- AMORTIZATION SCHEDULE
- Appliancel Loan Page 1
- $749.95 loan on 10/01/1991 at 15.00745% for 36 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 11/01/91 26.00 9.38 16.62 733.33
- 2 12/01/91 26.00 9.17 16.83 716.50
- --------------- -------------- ---------------
- ANNUAL TOTAL 52.00 18.55 33.45
- --------------- -------------- ---------------
- 3 01/01/92 26.00 8.96 17.04 699.46
- 4 02/01/92 26.00 8.75 17.25 682.21
- 5 03/01/92 26.00 8.53 17.47 664.74
- 6 04/01/92 26.00 8.31 17.69 647.05
- 7 05/01/92 26.00 8.09 17.91 629.14
- 8 06/01/92 26.00 7.87 18.13 611.01
- 9 07/01/92 26.00 7.64 18.36 592.65
- 10 08/01/92 26.00 7.41 18.59 574.06
- 11 09/01/92 26.00 7.18 18.82 555.24
- 12 10/01/92 26.00 6.94 19.06 536.18
-
-
-
-
-
-
-
-
-
- 15
-
-
-
-
-
-
-
- ALTERNATE PAYMENT SCHEDULES
-
- Besides Monthly Payment Schedules, the Antelope Amortization program can also
- calculate loans with Quarterly, Semiannual, and Annual payments.
-
- QUARTERLY PAYMENTS
-
- Harold receives a loan from his father for $10,000 to be repaid in Quarterly
- installments over 5 years. The interest is 7%.
-
- LOAN TITLE: Loan from Father
- DATE OF LOAN: 12/10/1992 SUBT MO: 12
- PRINCIPAL AMOUNT: 10,000.00
- INTEREST RATE: 7%
- FREQUENCY OF PAYMENTS (M,Q,S,A): Q (for Quarterly)
- NUMBER OF PAYMENTS: 20 (for 5 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Quarterly Payment Amount:
-
- PAYMENT AMOUNT: 596.91
-
-
- AMORTIZATION SCHEDULE
- Loan from Father Page 1
- $10,000.00 loan on 12/10/1992 at 7% for 20 Quarterly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 03/10/93 596.91 175.00 421.91 9,578.09
- 2 06/10/93 596.91 167.62 429.29 9,148.80
- 3 09/10/93 596.91 160.10 436.81 8,711.99
- 4 12/10/93 596.91 152.46 444.45 8,267.54
- --------------- -------------- ---------------
- ANNUAL TOTAL 2,387.64 655.18 1,732.46
- --------------- -------------- ---------------
- 5 03/10/94 596.91 144.68 452.23 7,815.31
- 6 06/10/94 596.91 136.77 460.14 7,355.17
- 7 09/10/94 596.91 128.72 468.19 6,886.98
- 8 12/10/94 596.91 120.52 476.39 6,410.59
- --------------- -------------- ---------------
- ANNUAL TOTAL 2,387.64 530.69 1,856.95
- --------------- -------------- ---------------
- 9 03/10/95 596.91 112.19 484.72 5,925.87
- 10 06/10/95 596.91 103.70 493.21 5,432.66
- 11 09/10/95 596.91 95.07 501.84 4,930.82
- 12 12/10/95 596.91 86.29 510.62 4,420.20
- --------------- -------------- ---------------
- ANNUAL TOTAL 2,387.64 397.25 1,990.39
- --------------- -------------- ---------------
-
-
-
-
-
-
- 16
-
-
-
-
-
-
-
- SEMIANNUAL PAYMENTS
-
- Ronald Strump is acquiring office space in Hawaii. He has negotiated a loan of
- $5 million for this purpose, the terms of which call for semiannual payments
- over 12 years. The negotiated interest rate is 8.6%.
-
- LOAN TITLE: Strump Tower Loan
- DATE OF LOAN: 08/20/1993 SUBT MO: 06
- PRINCIPAL AMOUNT: 5,000,000.00
- INTEREST RATE: 8.6%
- FREQUENCY OF PAYMENTS (M,Q,S,A): S (for Semiannual)
- NUMBER OF PAYMENTS: 24 (for 12 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Semiannual Payment Amount:
-
- PAYMENT AMOUNT: 338,083.83
-
-
-
- AMORTIZATION SCHEDULE
- Strump Tower Loan Page 1
- $5,000,000.00 loan on 08/20/1993 at 8.6% for 24 Semiannual Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 02/20/94 338,083.83 215,000.00 123,083.83 4,876,916.17
- --------------- -------------- ---------------
- ANNUAL TOTAL 338,083.83 215,000.00 123,083.83
- --------------- -------------- ---------------
- 2 08/20/94 338,083.83 209,707.40 128,376.43 4,748,539.74
- 3 02/20/95 338,083.83 204,187.21 133,896.62 4,614,643.12
- --------------- -------------- ---------------
- ANNUAL TOTAL 676,167.66 413,894.61 262,273.05
- --------------- -------------- ---------------
- 4 08/20/95 338,083.83 198,429.65 139,654.18 4,474,988.94
- 5 02/20/96 338,083.83 192,424.52 145,659.31 4,329,329.63
- --------------- -------------- ---------------
- ANNUAL TOTAL 676,167.66 390,854.17 285,313.49
- --------------- -------------- ---------------
- 6 08/20/96 338,083.83 186,161.17 151,922.66 4,177,406.97
- 7 02/20/97 338,083.83 179,628.50 158,455.33 4,018,951.64
- --------------- -------------- ---------------
- ANNUAL TOTAL 676,167.66 365,789.67 310,377.99
- --------------- -------------- ---------------
- 8 08/20/97 338,083.83 172,814.92 165,268.91 3,853,682.73
- 9 02/20/98 338,083.83 165,708.36 172,375.47 3,681,307.26
- --------------- -------------- ---------------
- ANNUAL TOTAL 676,167.66 338,523.28 337,644.38
- --------------- -------------- ---------------
-
-
-
-
-
-
- 17
-
-
-
-
-
-
-
- ANNUAL PAYMENTS
-
- The Jones Bros. Construction Co. has received a loan of $3,400,000.00 for heavy
- equipment purchases. The loan is to be repaid over 10 years in 10 annual
- payments. Interest will be 9.855%.
-
- LOAN TITLE: Jones Bros. Heavy Equipment Loan
- DATE OF LOAN: 07/25/1993 SUBT MO: 12
- PRINCIPAL AMOUNT: 3,400,000.00
- INTEREST RATE: 9.855%
- FREQUENCY OF PAYMENTS (M,Q,S,A): A (for Annual)
- NUMBER OF PAYMENTS: 10 (for 10 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S
-
- The program calculates the Semiannual Payment Amount:
-
- PAYMENT AMOUNT: 549,892.29
-
-
-
- AMORTIZATION SCHEDULE
- Jomes Bros. Heavy Equipment Loan Page 1
- $3,400,000.00 loan on 07/25/1993 at 9.855% for 10 Annual Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 07/25/94 549,892.29 335,070.00 214,822.29 3,185,177.71
- 2 07/25/95 549,892.29 313,899.26 235,993.03 2,949,184.68
- 3 07/25/96 549,892.29 290,642.15 259,250.14 2,689,934.54
- 4 07/25/97 549,892.29 265,093.05 284,799.24 2,405,135.30
- 5 07/25/98 549,892.29 237,026.08 312,866.21 2,092,269.09
- 6 07/25/99 549,892.29 206,193.12 343,699.17 1,748,569.92
- 7 07/25/00 549,892.29 172,321.57 377,570.72 1,370,999.20
- 8 07/25/01 549,892.29 135,111.97 414,780.32 956,218.88
- 9 07/25/02 549,892.29 94,235.37 455,656.92 500,561.96
- 10 07/25/03 549,892.34 49,330.38 500,561.96 0.00
-
- TOTALS: 5,498,922.95 2,098,922.95 3,400,000.00
-
-
-
-
-
- ENDING THE SESSION
-
- When you have finished using the Antelope Amortization program, simply press the
- ESCAPE Key to end the program and return to DOS.
-
-
-
-
-
-
-
-
-
- 18
-
-
-
-
-
-
-
- 5 - AMORTIZATION SCHEDULE
-
-
- There are three Output Options for the Amortization Schedule. You can display
- ASCII File on your Hard Disk or a Floppy Diskette.
- it on the Screen, you can print it on your Printer, or you can output it to an
-
- OUTPUT TO SCREEN
-
- To display the Amortization Schedule on your Monitor Screen, simply reply "S"
- to the Output Option line on the Loan Input Screen as shown below:
-
- OUTPUT OPTION (S/P/D): S
-
- After you view each screen of the schedule, press the ENTER key to advance to
- the next screen. After the last screen of the schedule, pressing ENTER will
- return you to the Loan Input Screen. You may also end the session at any time
- by pressing the ESCAPE Key.
-
- OUTPUT TO PRINTER
-
- To print a hard copy of the Amortization Schedule on your Printer, reply "P"
- to the Output Option line on the Loan Input Screen as shown below:
-
- OUTPUT OPTION (S/P/D): P
-
- Make sure that the printer is aligned and ready to start printing at the top of
- a new page. Paper wide enough to print 80 columns is sufficient. Printing
- will continue automatically until the entire schedule is printed.
-
- OUTPUT TO AN ASCII FILE
-
- To output the Amortization Schedule to an ASCII File on your Hard Disk or a
- Floppy Diskette, reply "D" to the Output Option line on the Loan Input Screen as
- shown below:
-
- OUTPUT OPTION (S/P/D): D
-
- A new message line and reply field will then appear as follows:
-
- DISK FILE NAME: AMORTFIL.ASC
-
- You may accept this default file name or overtype it with a file name of your
- own. You may also include disk and directory names, for example,
- "A:\MY.DIR\MYOWN.FIL". The DOS rules for file names must be followed. The
- schedule will be written to the file in Print format. It can be read later
- as input data to another program, or printed using the DOS "PRINT" command.
-
- FORMAT OF SCHEDULE
-
- The Amortization Schedule is output in an 80 column format with Headings,
- Subheadings, Detail Lines, Subtotals, and Grand Totals.
-
-
-
-
-
-
- 19
-
-
-
-
-
-
-
- HEADINGS
-
- The first Heading Line is the Report Title, "AMORTIZATION SCHEDULE". The next
- line displays the Loan Title Line that you entered on the Loan Input Screen.
- This line is centered automatically. The next line displays first the Initial
- Principal Amount of the loan as entered on the Principal Amount line of the Loan
- Input Screen, followed by the Date of the Loan from the Date of Loan input
- line, followed by the Interest Rate from the Interest Rate input line, followed
- by the Number of Payments from the Number of Payments input line, and then a
- description of the payment period, e.g., "Monthly Payments", as determined from
- the entry on the Frequency of Payments input line.
-
- SUBHEADINGS
-
- The Subheadings descriptively label the 6 detail columns displayed on the
- schedule. The first 3 columns (Number, Date, and Amount) describe the Payment,
- so they are grouped under "PAYMENT". The next 2 columns (Interest and
- Principal) describe how the payments are applied, so they are grouped under
- "APPLIED TO". The final column contains the Principal Balance and is labeled as
- such.
-
- DETAIL LINES
-
- The first column of the detail line displays the Payment Number. This is a
- sequential numbering of the payments from Payment 1 up to the final payment. The
- maximum number of payments is 9999.
-
- The second column of the detail line displays the Date that each payment is due.
- The date that the first payment is due will be one payment period (month,
- quarter, etc.) following the Date of the Loan as displayed in the heading.
- Likewise, each subsequent date will be increased by an increment of one payment
- period. If the Date of the Loan falls near the end of a month, for example
- October 31st, then subsequent payment dates will be adjusted as necessary to
- remain within the payment month. For example, the November payment would be due
- on November 30th, the February payment on February 28th or 29th, depending on
- whether or not it falls on a leap year. Years past the year 2000 will display
- as "00", "01", "02", etc.
-
- The third column displays the Amount of each Payment, usually a fixed amount,
- either as entered on the Payment Amount line or as computed by the program. Up
- to numeric 12 digits may be displayed, edited into a standard format with commas
- and a decimal point. Up to 15 digits will be displayed, but without commas. If
- the Fixed Payment to Principal Flag is on, this column will show a variable
- amount, the sum of the Payment Applied to Interest and the Fixed Payment Applied
- to Principal.
-
- The fourth column contains the Amount of the Payment Applied to Interest, as
- computed by the program. Up to 11 numeric digits may be displayed with commas,
- up to 14 digits without. The Amount of Payment Applied to Interest is computed
- by multiplying the Remaining Principal Balance of the preceding payment by the
- Periodic Interest Rate, i.e., the Annual Interest Rate as entered on the Loan
- Input Screen divided by the number of periods in a year. For the first payment,
- the Initial Principal Amount as entered on the Loan Input Screen is multiplied
- by the Periodic Rate.
-
-
-
-
- 20
-
-
-
-
-
-
- The fifth column contains the Amount of the Payment Applied to Principal, as
-
- computed by the program. Up to 12 numeric digits may be displayed with commas,
- up to 15 digits without. The Amount of Payment Applied to Principal is computed
- by subtracting the Amount of Payment Applied to Interest, as computed above,
- from the Payment Amount. If the Fixed Payment to Principal Flag is on, this
- column will show the fixed amount entered on the Payment Amount line.
-
- The sixth column displays the Remaining Principal Balance, after the current
- payment has been applied. Up to 12 numeric digits may be displayed with commas,
- up to 15 digits without. The Remaining Principal Balance for the first payment
- is calculated by subtracting the Amount of Payment Applied to Principal for the
- first payment from the Initial Principal Amount as entered on the Loan Input
- Screen. Subsequently, the Remaining Principal Balance for each payment is
- calculated by subtracting the Amount of Payment Applied to Principal for that
- payment from the Remaining Principal Balance of the preceding payment.
-
- SUBTOTALS
-
- Annual Totals are produced at the Subtotal level. The lines are identified by
- the label "ANNUAL TOTAL" at the beginning of the line. The columns totaled are
- the third, fourth, and fifth, that is, the Payment Amount column, the Amount
- Applied to Interest column, and the Amount Applied to Principal column.
-
- Annual Totals occur after the month specified in the Subtotal Month field of the
- Loan Input Screen. The default month is December.
-
- GRAND TOTAL
-
- At the end of the Amortization Schedule an overall total line is produced
- labeled "TOTALS:". Totals are displayed for the Payment Amount, Amount Applied
- to Interest, and Amount Applied to Principal columns.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 21
-
-
-
-
-
-
-
- 6 - TECHNIQUES
-
-
- This chapter covers some of the practical techniques that can be used in
- conjunction with the Antelope Amortization Program to produce the desired
- results for situations that require variations to the basic Amortization
- Schedule format.
-
- BALLOON PAYMENTS
-
- Suppose you are selling your home and in order to close the deal you agree to
- carry a Second Mortgage for the amount of $10,000.00 at 10% interest. The loan
- is to be amortized over 30 years with monthly payments for five years, at
- the end of which a Balloon Payment to include the Remaining Principal Balance
- will be due.
-
- First enter the loan information as follows with 360 entered for Number of
- Payments:
-
- LOAN TITLE: Home Second Mortgage Loan
- DATE OF LOAN: 06/01/1995 SUBT MO: 12
- PRINCIPAL AMOUNT: 10,000.00
- INTEREST RATE: 10%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 360 (for 30 years)
- PAYMENT AMOUNT:
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Payment Amount
- required to amortize the loan over 30 years.
-
- PAYMENT AMOUNT: 87.76
-
- Now use the ARROW UP key to move the cursor back to the Number of Payments line
- and change the entry to 60 (for 5 years). Use the DOWN ARROW or ENTER key to
- move the cursor back down. You may enter the Output Option you prefer, respond
- "Y" to the Screen Verification message, and the Amortization Schedule will be
- generated, showing 59 payments of $87.76 and a final Balloon Payment of
- $9,744.98, which includes $80.54 Interest and the Remaining Principal Balance of
- $9,664.44.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 22
-
-
-
-
-
-
-
- AMORTIZATION SCHEDULE
- Home Second Mortgage Loan Page 1
- $10,000.00 loan on 06/01/1995 at 10% for 60 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 07/01/95 87.76 83.33 4.43 9,995.57
- 2 08/01/95 87.76 83.30 4.46 9,991.11
- 3 09/01/95 87.76 83.26 4.50 9,986.61
- 4 10/01/95 87.76 83.22 4.54 9,982.07
- 5 11/01/95 87.76 83.18 4.58 9,977.49
- 6 12/01/95 87.76 83.15 4.61 9,972.88
- --------------- -------------- ---------------
- ANNUAL TOTAL 526.56 499.44 27.12
- --------------- -------------- ---------------
- 7 01/01/96 87.76 83.11 4.65 9,968.23
- 8 02/01/96 87.76 83.07 4.69 9,963.54
- 9 03/01/96 87.76 83.03 4.73 9,958.81
- 10 04/01/96 87.76 82.99 4.77 9,954.04
- 11 05/01/96 87.76 82.95 4.81 9,949.23
- 12 06/01/96 87.76 82.91 4.85 9,944.38
-
- / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
-
- 49 07/01/99 87.76 81.17 6.59 9,733.47
- 50 08/01/99 87.76 81.11 6.65 9,726.82
- 51 09/01/99 87.76 81.06 6.70 9,720.12
- 52 10/01/99 87.76 81.00 6.76 9,713.36
- 53 11/01/99 87.76 80.94 6.82 9,706.54
- 54 12/01/99 87.76 80.89 6.87 9,699.67
- --------------- -------------- ---------------
- ANNUAL TOTAL 1,053.12 974.31 78.81
- --------------- -------------- ---------------
- 55 01/01/00 87.76 80.83 6.93 9,692.74
- 56 02/01/00 87.76 80.77 6.99 9,685.75
- 57 03/01/00 87.76 80.71 7.05 9,678.70
- 58 04/01/00 87.76 80.66 7.10 9,671.60
- 59 05/01/00 87.76 80.60 7.16 9,664.44
- 60 06/01/00 9,744.98 80.54 9,664.44 0.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 10,183.78 484.11 9,699.67
- --------------- -------------- ---------------
-
- TOTALS: 14,922.82 4,922.82 10,000.00
-
-
-
-
-
-
-
-
-
-
-
-
-
- 23
-
-
-
-
-
-
-
- INTEREST ONLY LOANS
-
- Suppose a retail store has obtained a $200,000.00 bank loan to increase its
- inventory for the holiday season. The terms of the loan specify that interest
- only payments are to be made monthly until after 4 months, when the Principal
- Amount is to be repaid. Interest will be 14%.
-
- Enter the loan information as usual except for Payment Amount. Enter a Zero for
- Payment Amount and then press function key F2 instead of the ENTER Key. You
- will see the "P" flag appear to the right of the field. Function Key F2 tells
- the program to interpret the amount entered in the Payment Amount field as the
- Amount Applied to Principal instead of as the total Payment Amount. In this
- case the amount to be applied to the principal is zero. Now use the Up Arrow
- Key to move the cursor back to the Payment Amount Field. This time press
- Function Key F4. Now you will see the "H" flag appear to the right of the
- field. This tells the program to Hold the Zero Amount and not to calculate a
- different Payment Amount.
-
- LOAN TITLE: Inventory Loan
- DATE OF LOAN: 10/01/1992 SUBT MO: 06
- PRINCIPAL AMOUNT: 200,000.00
- INTEREST RATE: 14%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 4
- PAYMENT AMOUNT: 0 HP
- OUTPUT OPTION (S/P/D): S
-
- The Amortization Schedule generated will show 3 monthly interest payments of
- $2,333.33 and a final balloon payment of $202,333.33.
-
-
-
- AMORTIZATION SCHEDULE
- Inventory Loan Page 1
- $200,000.00 loan on 10/01/1992 at 14% for 4 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 11/01/92 2,333.33 2,333.33 0.00 200,000.00
- 2 12/01/92 2,333.33 2,333.33 0.00 200,000.00
- 3 01/01/93 2,333.33 2,333.33 0.00 200,000.00
- 4 02/01/93 202,333.33 2,333.33 200,000.00 0.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 209,333.32 9,333.32 200,000.00
- --------------- -------------- ---------------
-
- TOTALS: 209,333.32 9,333.32 200,000.00
-
-
-
-
-
-
-
-
-
-
- 24
-
-
-
-
-
-
-
- INTEREST FREE LOANS
-
- Joan's parents loaned her $5,000.00 to buy a car. They will charge no interest,
- but would like her to pay it back in monthly installments of $125.00. In order
- to keep track of her payments, she would like to have a schedule.
-
- Enter the loan information, entering Zero for Interest Rate and Number of
- Payments. When the cursor is in the Interest Rate field, press F4 instead of
- the Enter Key to tell the program to Hold the 0% Interest Rate and not to
- calculate a different Rate. You will see the "H" flag appear to the right of
- the field.
-
- LOAN TITLE: Joan's Loan
- DATE OF LOAN: 12/25/1991 SUBT MO: 12
- PRINCIPAL AMOUNT: 5,000.00
- INTEREST RATE: 0% H
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 0
- PAYMENT AMOUNT: 125.00
- OUTPUT OPTION (S/P/D): S
-
- The program will calculate the number of payments required to pay off the loan.
-
- NUMBER OF PAYMENTS: 40
-
-
-
- AMORTIZATION SCHEDULE
- Joan's Loan Page 1
- $5,000.00 loan on 12/25/1991 at 0% for 40 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 01/25/92 125.00 0.00 125.00 4,875.00
- 2 02/25/92 125.00 0.00 125.00 4,750.00
- 3 03/25/92 125.00 0.00 125.00 4,625.00
- 4 04/25/92 125.00 0.00 125.00 4,500.00
- 5 05/25/92 125.00 0.00 125.00 4,375.00
- 6 06/25/92 125.00 0.00 125.00 4,250.00
- 7 07/25/92 125.00 0.00 125.00 4,125.00
- 8 08/25/92 125.00 0.00 125.00 4,000.00
-
- / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
-
- 37 01/25/95 125.00 0.00 125.00 375.00
- 38 02/25/95 125.00 0.00 125.00 250.00
- 39 03/25/95 125.00 0.00 125.00 125.00
- 40 04/25/95 125.00 0.00 125.00 0.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 500.00 0.00 500.00
- --------------- -------------- ---------------
-
- TOTALS: 5,000.00 0.00 5,000.00
-
-
-
-
- 25
-
-
-
-
-
-
-
- FIXED PRINCIPAL PAYMENT
-
- Consider a loan agreement which requires the borrower to repay a fixed amount of
- the principal with every payment. In addition, he is to pay whatever interest
- is due. Thus the payments will not be fixed, but will decline over the term of
- the loan. Suppose the loan is for 25,000.00 and is to be repaid quarterly over
- 5 years. From each payment, $1250.00 is to be applied to the principal.
- Interest will be 11.625%.
-
-
- When entering the Payment Amount, press function key F2 instead of the ENTER key
- to cause the program to interpret the Amount as the Payment Applied to Principal
- instead of as the total Payment Amount. You will see the "P" flag appear to the
- right of the field.
-
- LOAN TITLE: ACME Loan
- DATE OF LOAN: 01/02/1998 SUBT MO: 12
- PRINCIPAL AMOUNT: 25,000.00
- INTEREST RATE: 11.625%
- FREQUENCY OF PAYMENTS (M,Q,S,A): Q
- NUMBER OF PAYMENTS: 20
- PAYMENT AMOUNT: 1250.00 P
- OUTPUT OPTION (S/P/D): S
-
-
-
- AMORTIZATION SCHEDULE
- ACME Loan Page 1
- $25,000.00 loan on 01/02/1998 at 11.625% for 20 Quarterly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 04/02/98 1,976.56 726.56 1,250.00 23,750.00
- 2 07/02/98 1,940.23 690.23 1,250.00 22,500.00
- 3 10/02/98 1,903.91 653.91 1,250.00 21,250.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 5,820.70 2,070.70 3,750.00
- --------------- -------------- ---------------
- 4 01/02/99 1,867.58 617.58 1,250.00 20,000.00
- 5 04/02/99 1,831.25 581.25 1,250.00 18,750.00
- 6 07/02/99 1,794.92 544.92 1,250.00 17,500.00
- 7 10/02/99 1,758.59 508.59 1,250.00 16,250.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 7,252.34 2,252.34 5,000.00
- --------------- -------------- ---------------
- 8 01/02/00 1,722.27 472.27 1,250.00 15,000.00
- 9 04/02/00 1,685.94 435.94 1,250.00 13,750.00
- 10 07/02/00 1,649.61 399.61 1,250.00 12,500.00
- 11 10/02/00 1,613.28 363.28 1,250.00 11,250.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 6,671.10 1,671.10 5,000.00
- --------------- -------------- ---------------
- 12 01/02/01 1,576.95 326.95 1,250.00 10,000.00
-
-
-
-
- 26
-
-
-
-
-
-
-
- ADJUSTABLE RATE MORTGAGES
-
- Adjustable Rate Mortgages and other variable rate loans can be computed by doing
- a loan computation and generating a schedule for each phase of the loan.
- Consider the following example. The Stevensons are buying a home with a
- $100,000.00 Adjustable Rate Mortgage (ARM) to be paid off over 30 years. The
- terms of the ARM are that the initial interest rate is to be 6.25%, then after
- 2 years, it will increase to 8.25%. After 3 more years at this rate, it will
- increase again to 10.25% and remain there for the remainder of the loan.
-
- To calculate the payments for the first 2 years, enter the information as
- follows:
-
- LOAN TITLE: Stevensons' ARM Home Loan
- DATE OF LOAN: 03/01/1991 SUBT MO: 12
- PRINCIPAL AMOUNT: 100,000.00
- INTEREST RATE: 6.25% (phase 1 interest rate)
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 360 (amortize over 30 years)
- PAYMENT AMOUNT: 0
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Payment Amount
- required for the first 2 years, amortizing over 30 years.
-
- PAYMENT AMOUNT: 615.72
-
- Now use the Up Arrow Key to move the cursor back to the Number of Payments line
- and change the entry to 24 (for 2 years). Use the Down Arrow or Enter Key to
- move the cursor back down, respond "Y" to the Screen Verification Message, and
- the Amortization Schedule will be generated for the first 2 years.
-
-
- AMORTIZATION SCHEDULE
- Stevensons' ARM Home Loan Page 1
- $100,000.00 loan on 03/01/1991 at 6.25% for 360 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 04/01/91 615.72 520.83 94.89 99,905.11
- 2 05/01/91 615.72 520.34 95.38 99,809.73
- 3 06/01/91 615.72 519.84 95.88 99,713.85
- 4 07/01/91 615.72 519.34 96.38 99,617.47
- 5 08/01/91 615.72 518.84 96.88 99,520.59
- 6 09/01/91 615.72 518.34 97.38 99,423.21
- 7 10/01/91 615.72 517.83 97.89 99,325.32
- 8 11/01/91 615.72 517.32 98.40 99,226.92
- 9 12/01/91 615.72 516.81 98.91 99,128.01
- --------------- -------------- ---------------
- ANNUAL TOTAL 5,541.48 4,669.49 871.99
- --------------- -------------- ---------------
-
-
-
-
-
-
- 27
-
-
-
-
-
-
-
- 10 01/01/92 615.72 516.29 99.43 99,028.58
- 11 02/01/92 615.72 515.77 99.95 98,928.63
- 12 03/01/92 615.72 515.25 100.47 98,828.16
- 13 04/01/92 615.72 514.73 100.99 98,727.17
- 14 05/01/92 615.72 514.20 101.52 98,625.65
- 15 06/01/92 615.72 513.68 102.04 98,523.61
- 16 07/01/92 615.72 513.14 102.58 98,421.03
- 17 08/01/92 615.72 512.61 103.11 98,317.92
- 18 09/01/92 615.72 512.07 103.65 98,214.27
- 19 10/01/92 615.72 511.53 104.19 98,110.08
- 20 11/01/92 615.72 510.99 104.73 98,005.35
- 21 12/01/92 615.72 510.44 105.28 97,900.07
- --------------- -------------- ---------------
- ANNUAL TOTAL 7,388.64 6,160.70 1,227.94
- --------------- -------------- ---------------
- 22 01/01/93 615.72 509.90 105.82 97,794.25
- 23 02/01/93 615.72 509.35 106.37 97,687.88
- 24 03/01/93 615.72 508.79 106.93 97,580.95
-
-
- Make a note of the Principal Balance Remaining at the end of 24 months. Return
- to the Loan Input Screen and enter this amount in the Principal Amount field.
- Enter 8.25 in the Interest Rate field and 336 in the Number of Payments field.
-
- LOAN TITLE: Stevensons' ARM Home Loan
- DATE OF LOAN: 03/01/1993 SUBT MO: 12
- PRINCIPAL AMOUNT: 97,580.95 (balance after 2 years)
- INTEREST RATE: 8.25% (phase 2 interest rate)
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 336 (total remaining payments)
- PAYMENT AMOUNT: 0
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Payment Amount
- required for the next 3 years, amortizing over the remaining 28 years of the
- loan.
-
- PAYMENT AMOUNT: 745.45
-
- Now use the Up Arrow Key to move the cursor back to the Number of Payments line
- and change the entry to 36 (for 3 years). Use the Down Arrow or Enter Key to
- move the cursor back down, respond "Y" to the Screen Verification Message, and
- the Amortization Schedule will be generated for the next 3 years.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 28
-
-
-
-
-
-
-
- AMORTIZATION SCHEDULE
- Stevensons' ARM Home Loan Page 1
- $97,580.95 loan on 03/01/1993 at 8.25% for 336 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 04/01/93 745.45 670.87 74.58 97,506.37
- 2 05/01/93 745.45 670.36 75.09 97,431.28
- 3 06/01/93 745.45 669.84 75.61 97,355.67
- 4 07/01/93 745.45 669.32 76.13 97,279.54
- 5 08/01/93 745.45 668.80 76.65 97,202.89
- 6 09/01/93 745.45 668.27 77.18 97,125.71
- 7 10/01/93 745.45 667.74 77.71 97,048.00
- 8 11/01/93 745.45 667.21 78.24 96,969.76
- 9 12/01/93 745.45 666.67 78.78 96,890.98
- --------------- -------------- ---------------
- ANNUAL TOTAL 6,709.05 6,019.08 689.97
- --------------- -------------- ---------------
- 10 01/01/94 745.45 666.13 79.32 96,811.66
- 11 02/01/94 745.45 665.58 79.87 96,731.79
- 12 03/01/94 745.45 665.03 80.42 96,651.37
- 13 04/01/94 745.45 664.48 80.97 96,570.40
- 14 05/01/94 745.45 663.92 81.53 96,488.87
- 15 06/01/94 745.45 663.36 82.09 96,406.78
- 16 07/01/94 745.45 662.80 82.65 96,324.13
- 17 08/01/94 745.45 662.23 83.22 96,240.91
- 18 09/01/94 745.45 661.66 83.79 96,157.12
- 19 10/01/94 745.45 661.08 84.37 96,072.75
- 20 11/01/94 745.45 660.50 84.95 95,987.80
- 21 12/01/94 745.45 659.92 85.53 95,902.27
- --------------- -------------- ---------------
- ANNUAL TOTAL 8,945.40 7,956.69 988.71
- --------------- -------------- ---------------
- 22 01/01/95 745.45 659.33 86.12 95,816.15
- 23 02/01/95 745.45 658.74 86.71 95,729.44
- 24 03/01/95 745.45 658.14 87.31 95,642.13
- 25 04/01/95 745.45 657.54 87.91 95,554.22
- 26 05/01/95 745.45 656.94 88.51 95,465.71
- 27 06/01/95 745.45 656.33 89.12 95,376.59
- 28 07/01/95 745.45 655.71 89.74 95,286.85
- 29 08/01/95 745.45 655.10 90.35 95,196.50
- 30 09/01/95 745.45 654.48 90.97 95,105.53
- 31 10/01/95 745.45 653.85 91.60 95,013.93
- 32 11/01/95 745.45 653.22 92.23 94,921.70
- 33 12/01/95 745.45 652.59 92.86 94,828.84
- --------------- -------------- ---------------
- ANNUAL TOTAL 8,945.40 7,871.97 1,073.43
- --------------- -------------- ---------------
- 34 01/01/96 745.45 651.95 93.50 94,735.34
- 35 02/01/96 745.45 651.31 94.14 94,641.20
- 36 03/01/96 745.45 650.66 94.79 94,546.41
-
-
-
-
-
-
- 29
-
-
-
-
-
-
-
- Again make note of the Principal Balance Remaining at the end of the schedule.
- Return to the Loan Input Screen and enter this amount in the Principal Amount
- field. Enter 10.25 in the Interest Rate field and 300 in the Number of Payments
- field.
-
- LOAN TITLE: Stevensons' ARM Home Loan
- DATE OF LOAN: 03/01/1996 SUBT MO: 12
- PRINCIPAL AMOUNT: 94,546.41 (balance after 5 years)
- INTEREST RATE: 10.25% (phase 3 interest rate)
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 300 (total remaining payments)
- PAYMENT AMOUNT: 0
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Payment Amount
- required for the remaining 25 years of the loan.
-
- PAYMENT AMOUNT: 875.86
-
- Respond "Y" to the Screen Verification Message, and the Amortization Schedule
- will be generated for the remainder of the loan.
-
-
-
- AMORTIZATION SCHEDULE
- Stevensons' ARM Home Loan Page 1
- $94,546.41 loan on 03/01/1996 at 10.25% for 300 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 04/01/96 875.86 807.58 68.28 94,478.13
- 2 05/01/96 875.86 807.00 68.86 94,409.27
- 3 06/01/96 875.86 806.41 69.45 94,339.82
- 4 07/01/96 875.86 805.82 70.04 94,269.78
- 5 08/01/96 875.86 805.22 70.64 94,199.14
- 6 09/01/96 875.86 804.62 71.24 94,127.90
- 7 10/01/96 875.86 804.01 71.85 94,056.05
- 8 11/01/96 875.86 803.40 72.46 93,983.59
- 9 12/01/96 875.86 802.78 73.08 93,910.51
- --------------- -------------- ---------------
- ANNUAL TOTAL 7,882.74 7,246.84 635.90
- --------------- -------------- ---------------
- 10 01/01/97 875.86 802.15 73.71 93,836.80
- 11 02/01/97 875.86 801.52 74.34 93,762.46
- 12 03/01/97 875.86 800.89 74.97 93,687.49
-
-
-
-
-
-
-
-
-
-
-
-
- 30
-
-
-
-
-
-
-
- ADDITIONAL PAYMENTS
-
- The Johnstones have been paying for 10 years on a 30 year home mortgage. With
- 20 years left to pay, they would like to know how much sooner the loan would be
- paid off if they made an additional payment of $5,000.00. Assume that there
- would be no penalty involved for this amount. The original amount of the loan
- was $36,000.00 and the interest rate is 11.25%
-
- First produce an amortization schedule for the original loan. Enter the
- information as follows:
-
- LOAN TITLE: Johnstones' Home Loan
- DATE OF LOAN: 04/14/1980 SUBT MO: 12
- PRINCIPAL AMOUNT: 36,000.00
- INTEREST RATE: 11.25%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 360
- PAYMENT AMOUNT: 0
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Payment Amount
- required:
-
- PAYMENT AMOUNT: 349.65
-
- Respond "Y" to the Screen Verification Message to generate the Amortization
- Schedule:
-
-
- AMORTIZATION SCHEDULE
- Johnstones' Home Loan Page 1
- $36,000.00 loan on 04/14/1980 at 11.25% for 360 Monthly Payments
-
- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 05/14/80 349.65 337.50 12.15 35,987.85
- 2 06/14/80 349.65 337.39 12.26 35,975.59
- 3 07/14/80 349.65 337.27 12.38 35,963.21
- 4 08/14/80 349.65 337.16 12.49 35,950.72
- 5 09/14/80 349.65 337.04 12.61 35,938.11
- 6 10/14/80 349.65 336.92 12.73 35,925.38
- 7 11/14/80 349.65 336.80 12.85 35,912.53
- 8 12/14/80 349.65 336.68 12.97 35,899.56
- --------------- -------------- ---------------
- ANNUAL TOTAL 2,797.20 2,696.76 100.44
- --------------- -------------- ---------------
-
-
-
-
-
-
-
-
-
-
-
- 31
-
-
-
-
-
-
-
- 9 01/14/81 349.65 336.56 13.09 35,886.47
- 10 02/14/81 349.65 336.44 13.21 35,873.26
- 11 03/14/81 349.65 336.31 13.34 35,859.92
- 12 04/14/81 349.65 336.19 13.46 35,846.46
-
- / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
-
- 118 02/14/90 349.65 313.45 36.20 33,398.29
- 119 03/14/90 349.65 313.11 36.54 33,361.75
- 120 04/14/90 349.65 312.77 36.88 33,324.87
-
-
- Find in the schedule the Principal Balance Remaining after 120 payments (10
- years). Subtract the amount of the additional payment from this Remaining
- Balance and enter the result in Principal Amount Field of the Loan Information
- Screen (Remaining Balance = 33,324.87; Additional Payment = 5,000.00; Amount to
- enter in Principal Amount field = 33,324.87 - 5,000.00 = 28,324.87). Leave the
- Number of Payments Field equal to Zero in order to allow the program to
- calculate the time needed to pay off the loan. Enter the same amounts in the
- Interest Rate and Payment Amount fields as in the original loan schedule.
-
- LOAN TITLE: Johnstones' Home Loan
- DATE OF LOAN: 04/14/1990 SUBT MO: 12
- PRINCIPAL AMOUNT: 28,324.87
- INTEREST RATE: 11.25%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 0
- PAYMENT AMOUNT: 349.65
- OUTPUT OPTION (S/P/D): S
-
- After entering the Output Option, the program will calculate the Number of
- Payments required:
-
- NUMBER OF PAYMENTS: 153
-
- Subtracting 153 from the original remaining number of payments, 240, the
- difference is 87 months. Therefore, the loan can be paid off 7 years and 3
- months early, if the Johnstones decide to make the extra $5,000.00 payment.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 32
-
-
-
-
-
-
-
- NEGATIVE AMORTIZATION
-
- The Bensons are a retired couple. The bank has allowed them a $70,000.00 loan
- on their home at 10% interest with monthly payments of $500.00. This loan will
- amortize negatively over 20 years, the bank assuming that the value of the home
- will continue to rise sufficiently to cover the balance due.
-
- Enter all information including the Payment Amount:
-
- LOAN TITLE: Bensons' Home Loan
- DATE OF LOAN: 09/15/1994 SUBT MO: 12
- PRINCIPAL AMOUNT: 70,000.00
- INTEREST RATE: 10%
- FREQUENCY OF PAYMENTS (M,Q,S,A): M
- NUMBER OF PAYMENTS: 240
- PAYMENT AMOUNT: 500.00
- OUTPUT OPTION (S/P/D): S
-
-
- Respond "Y" to the Screen Verification Message to generate the Amortization
- Schedule:
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- AMORTIZATION SCHEDULE
- Bensons' Home Loan Page 1
- $70,000.00 loan on 09/15/1994 at 10% for 240 Monthly Payments
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- ------------PAYMENT----------- -------------APPLIED TO-------- ------PRINCIPAL
- NUMB DATE AMOUNT INTEREST PRINCIPAL BALANCE
- ---- -------- --------------- -------------- --------------- ---------------
- 1 10/15/94 500.00 583.33 -83.33 70,083.33
- 2 11/15/94 500.00 584.03 -84.03 70,167.36
- 3 12/15/94 500.00 584.73 -84.73 70,252.09
- --------------- -------------- ---------------
- ANNUAL TOTAL 1,500.00 1,752.09 -252.09
- --------------- -------------- ---------------
- 4 01/15/95 500.00 585.43 -85.43 70,337.52
- 5 02/15/95 500.00 586.15 -86.15 70,423.67
- 6 03/15/95 500.00 586.86 -86.86 70,510.53
- 7 04/15/95 500.00 587.59 -87.59 70,598.12
- 8 05/15/95 500.00 588.32 -88.32 70,686.44
- 9 06/15/95 500.00 589.05 -89.05 70,775.49
- 10 07/15/95 500.00 589.80 -89.80 70,865.29
- 11 08/15/95 500.00 590.54 -90.54 70,955.83
- 12 09/15/95 500.00 591.30 -91.30 71,047.13
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- / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /
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- 230 11/15/13 500.00 1,057.40 -557.40 127,444.85
- 231 12/15/13 500.00 1,062.04 -562.04 128,006.89
- --------------- -------------- ---------------
- ANNUAL TOTAL 6,000.00 12,446.22 -6,446.22
- --------------- -------------- ---------------
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- 33
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- 232 01/15/14 500.00 1,066.72 -566.72 128,573.61
- 233 02/15/14 500.00 1,071.45 -571.45 129,145.06
- 234 03/15/14 500.00 1,076.21 -576.21 129,721.27
- 235 04/15/14 500.00 1,081.01 -581.01 130,302.28
- 236 05/15/14 500.00 1,085.85 -585.85 130,888.13
- 237 06/15/14 500.00 1,090.73 -590.73 131,478.86
- 238 07/15/14 500.00 1,095.66 -595.66 132,074.52
- 239 08/15/14 500.00 1,100.62 -600.62 132,675.14
- 240 09/15/14 133,780.77 1,105.63 132,675.14 0.00
- --------------- -------------- ---------------
- ANNUAL TOTAL 137,780.77 9,773.88 128,006.89
- --------------- -------------- ---------------
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- TOTALS: 253,280.77 183,280.77 70,000.00
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- As you can see, the loan Amortizes Negatively, leaving at the end of 20 years a
- Balloon Payment of $132,675.14.
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