Please spare me the snarkyness. I understand amortization just fine and can derive the formula for you if you wish. The interest is computed on the outstanding balance at each payment period. This results in the majority of the interest being paid in the early half of the loan. This is what I call front loading. If you want to use some other term then fine. The concept is clear.
Quote:
Originally Posted by dewilson58
He doesn't understand loan amortization.  |