RE: Creating an Amortization Schedule

["Shannon ODonnell" <sodonnell@xxxxxxxxxxxxxxxxxxxxxxxxx>]

This sounds like a school assignment.  

Calculating an amortization schedule is a pretty basic formula:

This will get you your monthly payment:

M = P * ( J / (1 - (1 + J) ** -N))

Where: 

P = Principal
I = Interest
J = Monthly Interest in decimal form: I(12 x 100)
N = Number of months of loan
M = Monthly Payment Amount

To create the amortization table, create a loop in your program and follow
these steps:


Step 1: Calculate H = P x J, this is your current monthly interest 

Step 2: Calculate C = M - H, this is your monthly payment minus your monthly
interest, so it is the amount of principal you pay for that month 

Step 3: Calculate Q = P - C, this is the new balance of your principal of
your loan. 

Step 4: Set P equal to Q and go back to Step 1: You thusly loop around until
the value Q (and hence P) goes to zero. 


You can probably find the algorithm in an old RPG II textbook too.  I
remember doing this same thing in RPG, COBOL and in C in school.

HTH


-----Original Message-----
From: rpg400-l-bounces@xxxxxxxxxxxx [mailto:rpg400-l-bounces@xxxxxxxxxxxx]
On Behalf Of Mike
Sent: Thursday, December 04, 2008 4:15 PM
To: RPG programming on the AS400 / iSeries
Subject: Creating an Amortization Schedule

I have been tasked with creating a program that will generate an
amortization schedule. I have only done a bit of research so far, but I need
to calculate out payments, interest per payment and principle per payment.
Can any one point me in the right direction to figure this out?