Business Math - Finance Math (27 of 30) Amortization - Principle vs Interest in Payments (15 Years)

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In this video I will demonstrates the effects of the monthly payments of a 15 year loan.
Next video in this series can be seen at:
• Business Math - Financ...

[@rankinnwc]

quick question, I noticed in this example that the amount going to the principle increased by the same amount ($.41) in each of the first 3 payments , is there a formula shortcut (so to speak) to determine when and/or how much the amount paid to principle will increase and by how much ?

[@MichelvanBiezen]

Actually it will increase each month, initially the increase will be very small, but it will get bigger as the payments are made. The increase = the amount going to principle that month x annual interest rate x 12 = $54.62 x 9.00% / 12 = 41 cents.

[@kleocatra9675]

He reminds me so much Dean Stockwell (in Quantum Leap) I keep waiting for him to call his calculator Ziggy. And Ziggy says the new loan balance is...

[@curtpiazza1688]

Very convincing! 😅

[@MichelvanBiezen]

It is an eye opener.