How do I create a car amortization plan?
If you want to create a car amortization plan, you must first find the amount of money that the debtor has to pay for each installment. As long as you know the amount of the loan, interest rate, repayment frequency and loan time, you can calculate the monthly amount of the installment using the formula: [P (R / 12)] / [1 - (1 + R / 12)
-m ]. If the debtor repays the loan every week, the formula becomes: [P (R / 52)] / [1 - (1 + R / 52)
-W ]. In these samples, "P" means the amount of the loan or the amount of principal, "R" means an interest rate, "M" means credit period in months and "W" means credit periods of weeks. For example,
Suppose the debtor earns $ 1,000 (USD) for $ 15,000 for an annual interest rate of 7 percent and must perform monthly installments for three years. Using the formula for calculating the monthly amount of the installment, you will obtain: [$ 14,000 USD (0.07 / 12)] / [1 - (1 + 0.07 / 12)
-36 ] = $ 43 $ 2.28. Note that the loan amount is the price of the car minus backup and that interestThe rate is expressed as a decimal decimal school.
Next, you must calculate the part of each installment that passes into interest payment. The formula for this calculation is: P (R / 12) for monthly installments or: P (R / 52) for weekly installments. With the same example as before, you can calculate the interest part of the first installment in this way: $ 14,000 (0.07 /12) = $ 81.67 USD.
Using the results of previous calculations you will find part of the installment that goes into the main loan. Simply withdraw the interest payment from the total installment. In the example, the calculation is as follows: 432.28 USD USD - $ 81.67 = $ 350.61.
After payment of the first installment, the amount of the debtor loan will be reduced. You can find a new car loan balance according to the part of the repayment of the main installment from the previous balance. Using the results from previous calculations you will find a new balance after the first installment: $ 14,000 - $ 350.61 = $ 13,649.37 USD.
you wantIf create a car amortization plan, you must create a table with five columns A (M + 2) or (W + 2) rows. The amortization plan of the example in this article would have five columns and 38 rows. The first line contains titles; The first column would say the "installment number", "payment of the second column", "interest" of the third column, "the fourth column" principal "and the last column" balance ".
Enter the initial balance in the first cell called "Balance" and then enter numbers 1 to M or W from the second cell further in the "Payment Number" column and enter the same amount of installments in all corresponding cells called "Payment". Enter numbers for the first installment as you have previously Calculad.
If you want to fill other cells in the CARS 'ASPEMBLE PLAN, you only need to make calculations similar to those you have previously made, and always use the new balance as the main one. For example, the interest part of the second installment is $ 79.62 USD ($ 13,649.39 (0.07 / 12)), while the main part of the repayment is $ 352.66 ($ 432.28 - $ 79.62),Which is a new balance of $ 13.73 USD ($ 13.64.39 - $ 352). You can repeat the same calculations and fill the entire table manually or connect the numbers and formulas into the table software.