Analysing Financial Situations Using Amortisation Tables (VCE SSCE General Mathematics): Flashcards
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Amortisation table
Amortisation table
Tool tracking loan repayments/investment growth over time
Final payment formula
Final payment formula
Remaining balance + Interest on remaining balance
Why final payment differs from regular payments
Why final payment differs from regular payments
Remaining balance may not divide evenly by regular payment
Total interest calculation (Method 1)
Total interest calculation (Method 1)
Total payments - Original principal
Total interest calculation (Method 2)
Total interest calculation (Method 2)
Sum of all interest entries in the table
Interest trend in reducing balance loan
Interest trend in reducing balance loan
Decreases over time
Principal reduction trend in reducing balance loan
Principal reduction trend in reducing balance loan
Increases over time
Interest & principal reduction relationship in loans
Interest & principal reduction relationship in loans
Move in opposite directions (inverse relationship)
Balance & interest trend in compound interest investment
Balance & interest trend in compound interest investment
Both increase over time
Why interest decreases in reducing balance loans
Why interest decreases in reducing balance loans
Calculated on progressively smaller amounts