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Amortized Loan: Fixed Amount Paid Periodically. Many consumer loans fall into this

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2.4 Loan Payments

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Definition of Loan


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5.3 Loans and Down Payments – Business Mathematics

a: $100,000, the amount of the loan. r: 0.005 (6% annual rate—expressed as 0.06—divided by 12 monthly payments per year) n: 360 (12 monthly payments per year times 30 years) Here's how the math works out: 100,000 ÷ { [ ( 1 + 0.005 ) 360 ] - 1 } ÷ [ 0.005 ( 1 + 0.005 ) 360 ] = 599.55. The monthly payment is $599. See more
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Section 3.5: The Mathematics of Finance


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