HERE IS WHAT THE NAKED ACCOUNTANT DOES:
This is really bugging me. I recently bought a Toyota and had to get a loan at the bank to pay for it.They asked me if I wanted an “amortization table” to keep up with my scheduledmonthly payments. I told them yes although I have no
....idea what it is. Do you?
Bugged & Curious
Dear B&C:
I’ll answer with an example. Let’s say your loan is $15,000 (called principal) and you have to pay it back over 5 years (sixty months) at 5% interest. Each of the sixty monthly payments are split into principal and interest (cost of doing business). An “amortization table” will reflect how each monthly payment is applied to reduce the loan balance. Assuming all of your sixty payments are timely, you will have paid back approx $16,984 ($15K loan plus $1,984 interest).
I like cars. I think that cars are a very important development for human beings and that every day help us much in our lives.
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