Calculate the adjusted principal after partial payment

Hi khiethamarie12


Is the interest compounded?

yes

Let's assume it's compounded monthly, for simplicity sake.

Here's how I would approach the problem. First calculate the regular monthly payments

R = P*i / [1 - (1+i)^-n]

R = [ 3,478,104 * 0.06/12 ] / [1 - (1+0.06/12)^-120]

R = 38,614.09

That's how much you pay in 1 month.

Multiply that by 13 to get how much you've paid after 13 months: 501,983.11

Subtract that from the principal: 3,478,104 - 501,983.11 = 2,976,120.89

Subtract the partial payment of 1,000,000: 2,976,120.89 - 1,000,000 = 1,976,120.89

I believe that's how it's done, but not entirely sure

if this is the calculation does this mean that my monthly amortization will remain 38,614.09 and my maturity date will be less than 10 years? or my monthly amortization will be lessen and my maturity date will remain 10 years?

The rate will remain the same, but you'll end up paying off the principal faster, so 'n' would definitely change.

Sorry for the late reply!