Amortization Rate?
I am looking for how to calculate amortization rate on a model. I have been given interest rate, interest free period, amortization term, but also amortization rate.
How am I supposed to calculate the loan payments?
Is it 3.5%(amort rate) of the loan balance monthly, and then calculating interest monthly on the reduced loan balance. Or is it a fixed payment from original principal loan balance?
PMT() - Interest = Amortization.
I think you misread. They have a fixed amortization rate 3.5%, and an interest rate or 3.5%. I'm assuming it is fixed amortization, and then
Hmm - there are constant amortizing mortgages where you would pay a flat amount towards principal every month plus interest on the opening balance each month, but haven't seen it with a rate-based amortization. Probably a similar concept.
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I’m pretty sure this doesn’t exist and/or you misunderstood what you are looking at.
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