PPT Slide

Amortization schedule for a level-payment

fixed-rate mortgage

Mortgage loan: $100,000

Mortgage rate: 8.125%

Monthly payment: $747.50

Term of loan: 30 years (360 months)

where i is the simple monthly interest rate.

Example

n = 360, mortgage balance = $100,000, i = 0.08125/12.

Mortgage payment = $742.50.