Fincancial Maths

Introduction
Amortisation formula


Introduction


 we are often asked to calculate the sum of money formed after interest has been accumulated at a certain rate. Compound interest is interest charged on a new fixed amount every term.


Monthly interest conversion


LC Solution

Amortisation formula


The formula above can be rearranged to create a new formula which is used to calculate the individual repayment amounts of a loan / mortgage.

LC solution 2017


LC solution 2015


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