Amortisation schedules
General · Mathematics
Study notes
Q: ₹10000 loan, 10% yearly, 3 annual payments. Build amortisation schedule. Payment: 10000/a_3 = 10000/2.4869 = ₹4021.15. Year 1: interest 1000, principal 3021.15, balance 6978.85. Year 2: interest 697.89, principal 3323.26, balance 3655.59. Year 3: interest 365.56, principal 3655.59, balance 0 ✓. Total interest: ₹2063.45! (Interest shrinks, principal grows!)