April 22nd, 2015, 01:29 AM  #1 
Newbie Joined: Apr 2015 From: london Posts: 2 Thanks: 0  financial math
Hi guys, I have come across this calculation of principal amount reduction of a loan for property and do not understand the logic behind it. I would appreciate it if someone could explain to me the middle three rows where it says "internal mathematical calculations ignore these rows". Many thanks. Last edited by skipjack; April 22nd, 2015 at 02:10 AM. 
April 22nd, 2015, 02:12 AM  #2 
Global Moderator Joined: Dec 2006 Posts: 17,720 Thanks: 1359 
The End of Yr Balance value seems to be calculated by subtracting the third internal value from the first internal value.

April 22nd, 2015, 03:17 AM  #3 
Newbie Joined: Apr 2015 From: london Posts: 2 Thanks: 0 
thanks skipjack, I understand that, but I don't understand why initial loan is increased every year, and why interest rate is changing, and why they calculated interest rate this way. the whole thing is very confusing for me many thanks 

Tags 
financial, math 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Financial Math (didnt know where to put it)  zdesignzi9250  Complex Analysis  0  April 28th, 2014 01:06 AM 
Basic financial math problems  cmple  Economics  8  September 6th, 2012 03:43 PM 
Financial Math Q  jbrez  Calculus  1  November 25th, 2011 03:21 AM 
Financial Math Q (partial derivatives) Please Help  jbrez  Applied Math  0  November 24th, 2011 10:01 PM 
Financial Math Question (I think this is in the right spot)  dudex  Calculus  0  August 9th, 2011 09:52 AM 