Amortization Equation - Introduction to Engineering - Lecture Slides, Slides of Engineering Mathematics

These are the Lecture Slides of Introduction to Engineering which includes Ordinary Annuity Equation, Sinking Fund Equation, Quarterly Payment, Sinking Fund, Periodic Payment, Maturity Account, Annual Interest Rate, Monthly Compunding etc.Key important points are: Amortization Equation, Ordinary Annuity Equation, Sinking Fund Equation, Quarterly Payment, Sinking Fund, Periodic Payment, Maturity Account, Annual Interest Rate, Monthly Compunding

Typology: Slides

2012/2013

Uploaded on 03/27/2013

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Amortization Equation
Equation to Find the Monthly
Payment for Your Mortgage
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Amortization Equation

Equation to Find the Monthly

Payment for Your Mortgage

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Monthly Payment

Year Loan t

MonthlyCompunding n

Interest Rate

Example YourLoan

r n

Loan Amount r n Periodic Payment n t

Monthly Payment for a Mortgage

Sinking Fund Equation

• Find the required quarterly payment in an

account that pays 5% annual interest rate

compounded quarterly, such that in 18 years

at maturity the account has $50,000.00 in it.

nt r n

A r n Periodic Payment

Continue Sinking Fund Example

  • Here A=$50,000.00, n=4, t =18 Years, and r=5%=.05.
  • So the periodic payment = Quarterly Payment

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ready forcollegeon yourkid s th birthday

and deposit your savingseveryquarter you will have

Soanaverage if you save aday

Quarterly Payment