| into many smaller cash flow installments for easier repayment. Unlike other repayment models, each repayment installment consists of both principal and interest. Amortization is chiefly bank green mortgage point in loan repayments (a common example being a mortgage) and sinking funds. The payments are usually of equal amounts. In the case of a loan, a greater amount of the payment is bank green mortgage point to interest at the beginning, while during the latter portion, more money is applied to principal. The formula for an amortization is: (1-v^n)/i, where n = # of years, v = 1/(1+i), and i = interest rate / 100. Divide by (1+i) if at beginning due. Another method of writing this kind of formula is: "The Caps" - In industry slang, there you could ask for the Caps of a loan, bank green mortgage point if |
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