Year 1 Interest

vCalc Reviewed
Equation / Last modified by Tim on 2015/07/13 11:27
`"Interest"_"Year 1" = `
Year 1 Interest
Variable Instructions Datatype
`(L) Loan Amount` This is the original loan balance (Principal) Decimal
`(i) "%interest"` Enter the annual interest rate as a precentage; i.e., enter 4.6 for a 4.6% interest rate Decimal
`(n) Duration Months` Enter the total number of monthly payments Decimal
Type
Equation
Category
Industries->Finance->Mortgages and Loans
Contents
3 variables
Rating
ID
vCalc.Year 1 Interest
UUID
59f867e8-56dc-11e3-9569-bc764e049c3d

This Year 1 equation provides the amount of interest paid in the first year on a fixed interest loan.  This is useful for approximating the tax deduction for the first year.  

INPUTS

The input parameters are:

  • L - the Principle loan amount
  • n - the number of months in the duration of the loan
  • i - the annual interest rate