Amortisation Tables (VCE SSCE General Mathematics): Flashcards

Payment breakdown: interest, principal change, new balance

Interest first, then principal reduction, then new balance

Loan paid off completely by regular payments over time

$\frac{r}{100 \times p} \times \text{previous balance}$

$\text{Payment} - \text{Interest}$

$\text{Previous balance} - \text{Principal reduction}$

Interest decreases, principal reduction increases

Initial amount before any payments made

$\text{Interest} + \text{Payment}$

$\frac{\text{Interest}}{\text{Principal}} \times 100$