One of the payment methods T-REX offers is Scheduled Payments.
With Scheduled Payments, the payment will be fixed for the entire term of the loan, as set in the Scheduled Payments column, it can also be set as a Vector. The interest is calculated regularly, and the principal will be the difference between the two.
Example:
Modeling one loan, with Scheduled Payment payment method.
- The loan’s balance is $1,000,000
- The interest is 5%
- Payment is set to $6,000
- Amortization term 100
The Report:
Calculation:
Set the Payment to $6,000.
Calculate the interest based on the previous period’s ending balance.
Calculate the principal by subtracting the interest from the total payment amount.
Subtract the principal amount from the collateral balance, on the last period, the principal will pay out the remaining collateral balance.
