No Amortisation (Fixed Equal Payments)

Borrowed Amount
50,000
Rate
10%
Tenor
8

Years

Beginning Balance Interest Principal Ending

1
50,000
5,000
6,250
43,750
2
43,750
4,375
6,250
37,500
3
37,500
3,750
6,250
31,250
4
31,250
3,125
6,250
25,000
5
25,000
2,500
6,250
18,750
6
18,750
1,875
6,250
12,500
7
12,500
1,250
6,250
6,250
8
6,250
625
6,250
-

* Fixed Principal Payment

** Interest portion is decling over the period of time due to reducing principal balance

Total Payment
11,250
10,625
10,000
9,375
8,750
8,125
7,500
6,875
Total
72,500
Less: Principal
(50,000)
Interest Portion
22,500

g principal balance

Amortisation Schedule (Fixed Annuity Payments)

Borrowed Amount
50,000
Rate
10%
Tenor
8
Annuity Payment
9,372
Years

Beginning Balance Interest Annuity Installment Principal

1
50,000
5,000
9,372
4,372
2
45,628
4,563
9,372
4,809
3
40,818
4,082
9,372
5,290
4
35,528
3,553
9,372
5,819
5
29,709
2,971
9,372
6,401
6
23,307
2,331
9,372
7,041
7
16,266
1,627
9,372
7,746
8
8,520
852
9,372
8,520

* Fixed Annuity Payments

** Remaining amount of annuity after deducting interest portion is going to be utilized for paying princ
*** Over the period of time interest portion is declining due to reduction in principal and principal port

Ending
45,628
40,818
35,528
29,709
23,307
16,266
8,520
0

Total Payment
9,372
9,372
9,372
9,372
9,372
9,372
9,372
9,372
Total
74,978
Less: Principal Portion
(50,000)
Interest Portion
24,978

tilized for paying principal amount

pal and principal portion is increasing due to balancing figure of fixed annuity payment and reducing interest pa

and reducing interest payments