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?
| +48 | Being asked to stay behind and train my replacement | 14 | 2d | |
| +39 | New Comp Database - Google Form (Now with Data Validation) | 24 | 16h | |
| +30 | What does REPE actually do? | 12 | 20h | |
| +26 | Starting University LP Fund | 6 | 15h | |
| +25 | Leave brokerage to be GP | 1 | 10h | |
| +24 | Public Homebuilders | 9 | 21h | |
| +22 | REPE/Development GPA | 15 | 1d | |
| +21 | Seeking Career Guidance in Real Estate Development Post-Graduation | 3 | 55m | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 2d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
--
I’m pretty sure this doesn’t exist and/or you misunderstood what you are looking at.
Labore optio sequi et. Rem labore optio corporis odio molestiae. Necessitatibus ex officiis voluptatem qui voluptate illum voluptas. Et aut eum sed ut dolores ea.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...