APPENDIX D

AMORTIZATION TABLES: MONTHLY PAYMENTS

Table D.1 provides a factor for each dollar borrowed at interest rates from 3.25 to 8 percent. For example, if your loan amount was $72,500 with 5.25 percent interest over 25 years, you would find the factor for the rate and number of years. Using the row for 5.25 percent and the column for 25 years, you find a factor of 0.00599248. Multiply this by the loan amount to find the required monthly payment:

0.00599248 x $72,500 = $434.45

Using the factor rather than depending on tables of actual payments required is easier and more efficient. Most books of tables show required payments for rounded amounts, so to use such a table, you would need to add the required payments for $70,000, $2,000, and $500.

Table D.1: Years to Amortize a Loan