LOAN
ADJUSTABLE-RATE CONSTANT PRINCIPAL REPAYMENTS

To obtain amortization payments ( A ) firstly, dividing the principal ( _{s}C ) by the number of periods:_{0}Once calculated the principal or capital repayments ( ir ) of each year has to be adjusted by the margin or spread ( _{s}d ), with the exception of the first year interest rate, which is not subject to this type of adjustment. The adjustment is calculated on the basis of the following formula:With the above formula you can obtain the nominal rate of interest of this period ( Once calculated the rate of interest of eacj period, yo have to calculate the amortization payments ( The principal or capital repayments ( I ) of each period with the following formula:_{s}Once obtained the interest payments ( A ) in each period in order to obtain the amortization payments ( _{s}a )._{s} |