WinAmort Professional 2.0

Fixed Principal

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Fixed Principal

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Fixed Principal

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Fixed Principal loans are loans in which a fixed amount of principal is reduced

by each payment. The payment amount will decrease as the loan progresses

because the interest amount will decrease, but the amount applied to reduce the

principal will remain constant. The following example will better illustrate this

concept.

 

Fixed Principal - EXAMPLE

On June 16, 2011, ABC Company takes out a $375,000.00 fixed principal

loan to add an extension to their head office. The annual interest rate is 11.125%. The payments are to be made every month for 32 months beginning on August 1, 2011.

 

SolveSolve The Payment amount.

 

By now  you should be comfortable entering in the information into the Intuitive forms.

Therefore, enter in all the data from the example and compare your form to the one illustrated below.

 

Fixed Principal Loan Example

Goto: Interest Only