Back to Blog
In my last blog, I created a Factor Rate Table, which you'll use to compute for the monthly amortization. You just need to get the interest rate and the term, look for it in the table, and then multiply it with the Principal Amount. That's it. It's very easy. With just simple multiplication, you can already compute for the monthly amortization.
But the question is, how did I compute for the amortization factor?
Well, getting the amortization factor is complex since you'll be needing a scientific calculator to compute for it. But don't worry, I'll teach you each step on how to compute for it just in case the factor rate table is not available
And now here's the complete formula.
And that's how you compute for the monthly amortization.
If you're still having trouble, just leave a comment or contact me.
Have a Great Day!