The Economic Consequences of Homelessness in The US

The one-liner for a program would be (adjust for your favorite language):
M = P * (J/(1-(1+J) ** -N))
So now you should be able to calculate the monthly payment, M. To calculate the
amortization table you need to do some iteration (i.e. a simple loop). I will tell you the
simple steps :
Step 1: Calculate H = P x J, this is your current monthly interest
Step 2: Calculate C = M - H, this is your monthly payment minus your monthly interest,
so it is the amount of principal you pay for that month
Step 3: Calculate Q = P - C, this is the new balance of your principal of your loan.
Step 4: Set P equal to Q and go back to Step 1: You thusly loop around until the value
Q (and hence P)
goes to zero.
Programmers will see how this makes a trivial little loop to code, but I have found that
many people now surfing on the Internet are NOT programmers and still want to
calculate their mortgages! So this page was dedicated more to the latter. If you have
any further questions you can contact me for more info.
Finding the Number of Periods given a Payment, Interest and Loan
Amount
This formula previously was not explicit enough!! The 1/q factor in there was to
convert the number of periods into years. For number of payments this must
actually be left out.
Many people have asked me how to find N (number of payments) given the payment,
interest and loan amount. I didn't know the answer and in my calculators I find it by
doing a binary search over the payment formula above. However, Gary R. Walo (
nenonen5@southeast.net) found the answer to the actual formula in the book: The Vest
Pocket Real Estate Advisor by Martin Miles (Prentice Hall).
Here is the corrected formula:
n = - (LN(1-(B/m)*(r/q)))/LN(1+(r/q))
# years = - 1/q * (LN(1-(B/m)*(r/q)))/LN(1+(r/q))
Where:
q = amount of annual payment periods
r = interest rate
B = principal
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