Amortized Loans(consumer loans,mortgages)

Time Value of Money
Amortized Loans(consumer loans,mortgages)
It mean that are loans that are repaid in equal payments over a set period of time , with interest included in the payment amounts . most consumer loans, including mortgages, are amortized loans

In the above equation for calculating amortized loans ,PV represents present value , PMT stands for payment, I is the interest rate is the current time period, and n is the number of periods.

Loan amortization schedule

A loan amortization schedule is a table that identifies the amount of interest in each payment.when constructing a loan amortization table. each row should represent a period of payment ,and there should  be six columns of data.

First column labeled PERIOD, second labeled BEGINNING Balance , third labeled PAYMENT , the fourth labeled INTEREST PAID, fifth labeled PRINCIPAL PAID,sixth labeled ENDING BALANCE