LOAN
ADJUSTABLE-RATE FULLY AMORTIZING PAYMENT

In order to obtain the periodic amortization payments ( C )._{s-1}Each one of these "new" loans are calculated with the rate of interest of each interest adjustments periods and with the remaining term to maturity as the term of the new loan. You have to know that the index rate ( 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 applied to each period, you have to calculate the outstanding debt at the beginning of the period ( a )_{s}The periodic amortization payments ( In the first year, you do not need to calculate the outstanding debt ( C ). But, you have to know the outstanding debt ( _{0}C ) in the remaining year in order to apply the previous formula. So, you have to obtain the outstanding debt ( _{s-1}C ) at the beginning of each period on the basis of the following formula:_{s-1} To obtain all the periodic amortization payments ( a )._{n}You should know this: |