Learning Objectives

After completing this chapter, you will be able to:

Calculate the principal balance after any payment using both the Prospective Method and the Retrospective Method

Calculate the final loan payment when it differs from the others

Calculate the principal and interest components of any payment

Construct a loan's amortization schedule

Calculate mortgage payments for the initial loan and its renewals

Calculate mortgage loan balances and amortization periods to reflect prepayments of principal

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