A Hidden Case of Negative Amortization.

Waits, Bert K.; Demana, Franklin

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Peer reviewed

ERIC Number: EJ409309

Record Type: CIJE

Publication Date: 1990

Pages: N/A

Abstractor: N/A

ISBN: N/A

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A Hidden Case of Negative Amortization.

Waits, Bert K.; Demana, Franklin

College Mathematics Journal, v21 n2 p121-26 Mar 1990

The rule of 78 is used by banks and loan companies to compute the amounts due when installment loans are paid early. Describes an unexpected case of negative amortization when the rule is applied. Presents an actual problem and discusses the case. (YP)

Descriptors: Algorithms, College Mathematics, Computation, Computer Oriented Programs, Higher Education, Interest (Finance), Loan Repayment, Mathematical Applications, Mathematical Formulas, Mathematics Materials

Publication Type: Journal Articles; Reports - Descriptive

Education Level: N/A

Audience: Teachers; Practitioners

Language: English

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