Loan amortization - TBS open teaching

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Comedian Sammy Obeid (host of “100 Humans” on Netflix) in collaboration with TBS Business School explains loan amortization. Understanding how loans are amortized is important not only to students of finance, but also to anyone who has borrowed money or plans to do so, whether for buying a house or a car, financing an education, or any other purpose. This video provides an entertaining yet rigorous overview of how loan amortization works.

Suggested discussion questions:
- How is the ending loan balance calculated each period?
- How does the term of the loan affect the amortization schedule?

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That is a good explanation, I really liked it. The presentation was funny and interesting too

vamsipranavv
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I came up with a formula to calculate the periodic payment:

LA = Loan Amount
r = interest rate
t = rate of payment (Ex: in the video you pay yearly for 5 years so t would be 5)

LA(r+1)^t * (summation(x=0, to t-1) of [ (r+1)^x) ])^-1

inafricaheightdependsonhow
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Stop shouting and stick to the basics otherwise the content seems to be good

MandeepSinghTalwar