Finance[amortization]  amortization table for a loan

Calling Sequence


amortization(amount, payments, rate, nperiods)


Parameters


amount



amount of the loan

payments



(number or procedure) size of the payments

rate



interest rate

nperiods



maximum number of payments (default = infinity). Stops when balance reaches 0





Description


•

The amortization command gives a sequence of two elements: an amortization table and the cost of the loan.

•

The amortization table consists of lists comprising of 5 elements

1) The period number

2) The amount of the payment

3) The interest for the period

4) The amount by which the principal is reduced (increased if negative)

5) The new balance



•

The cost of the loan is the sum of the third column.

•

The payments option can be a procedure. It will be called with two arguments: the period number and the interest to be paid. This can be used, for example, to have increasing payments, or to pay down a fixed amount of principal at each period.

•

Since amortization used to be part of the (now deprecated) finance package, for compatibility with older worksheets, this command can also be called using finance[amortization]. However, it is recommended that you use the superseding package name, Finance instead: Finance[amortization].



Compatibility


•

The Finance[amortization] command was introduced in Maple 15.



Examples


>


Amortization table for a loan of 1000 units at interest rate of 10% per period with payments of 500 units
>


 (1) 
From this we see that there will be 3 payments, the last one being of 176 units. The cost of the loan is 176 units.
Now we make payments to be of 500 units + the interest for that period:
>


 (2) 
There are now 2 payments, one of 600 units and one of 550 units. The cost of the loan is 150 units. Now we make quarterly payments of 150 units on a loan of 1000 units at a stated rate of 12%. The payments are increased yearly by 10 units. The amortization table is computed as follows:
>


>


 (3) 
There were 8 payments altogether with a loan cost of 138 units. Obtaining just the first year, we make use of the fourth argument:
>


 (4) 
This indicates the cost of the loan at that point.


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