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Amortization





Calculator-Amortization


FORMULA:

  • The method of paying off debt gradually (installental payment) until the debt(principal) plus the interest are paid completely is referred to as amortization
  • Computed as followed:
    Amortization
    Pr/ [1- (1+r/n)-t]
    Where
    p=principal
    r=annual rate
    t=number of years
    n=number of times compounded per year