FAMILY LOAN AMORTIZATION (FLA) by FAMware, Computer Software
for the Family. You provide the loan amount, interest rate, months to repay, and
FLA calculates the monthly payment. Produces a schedule showing the disposition
of each payment, to principal and to interest, and the remaining balance throughout
the life of the loan. Several variations and options regarding making extra payments
along the way. Great for "what-if" analysis. Easy to learn and use.
Inexpensive. For Windows 95,98,NT,00,ME.
FAMILY LOAN AMORTIZATION (FLA) Main Features:
Repaying A Single Sum
Suppose you borrow 1000 dollars at 9 percent interest and you must repay it at
the end of three years in one lump sum (i.e., no monthly payments during the three
years). The loan is set up so that you are charged interest against the outstanding
balance quarterly. How much will you need to pay off the loan at the end of the
three years?
Repaying An Amount Each Month
- Simple Monthly Repayment Scenario
Suppose you purchase a dirt bike that costs $2400. You don't have the money
so you "finance it" at 8% interest per annum. Based on your job, and
expenses, you think you can pay about $140 a month for the bike. The bike finance
company agrees and structures the note to accommodate your repayment plan. However,
to make sure they get their money, they want you to set up an automatic monthly
deduction from your pay check that goes to the bike finance company. How long
will it take you to pay off the $2400 loan?
- Using A Calculated Monthly Payment
Suppose you must send your daughter on a trip to Europe that costs $4000. You
don't have the money saved so you ask to borrow it from a friend. The friend
usually earns 13% on investments and is willing to make the loan if you will
pay back the $4000 plus 13% interest. The friend wants you to make an equal
payment each month such that the entire loan is paid back in 9 months. How much
will you need to pay each month to pay back $4000 at 13% by the end of the 9
months?
More Advanced Features
Suppose you wish to take out a mortgage for $150,000 to purchase a house.
You have 20 years until retirement so you want the mortgage term to be for
20 years. The current going mortgage interest rate is 9.75%. Let's suppose
that right now you can afford a monthly payment of $1500 a month from your
salary but the mortgage company, at 9.75% for 20 years, only requires that
you to pay $1422.78 per month.
