finance peoples...lend a helping hand

[Journer]

so i'm working on this program for my C++ class (didnt put this in apps, program, game b/c i dont have a question about coding anything) and i need to do some math to compute some things related to a mortgage.
here is a pic of someone's working version: poopers.JPG

things i know how to do:
convert the IR to decimal (divide by 1200, because the input is APR, and i want it in months)
use the amortization calc to get the monthly payment
find the interest paid and obviously find the difference b/t them...

what i dont know how to do:
ok...you have the monthly payment of: 362.351...but how do you determine how much of that is paid toward interest and how much is paid towards principle?

also, i know after i find those two values i subtract ONLY the principle from the total loan amount...EX: line1 - int paid that month was 55, princ was 307.351...only subtract 307.351 from 12000 (loan amt)

thnks

 

[dullard]

Looks like you got it all down (incorrect technically but correct practically). So what is the problem? If the interest on month #1 was $55, and the payment was $362.35, then $55 went to interest and 307.35 went to principal. What is the question?

 

[Journer]

Originally posted by: dullard
Looks like you got it all down (incorrect technically but correct practically). So what is the problem? If the interest on month #1 was $55, and the payment was $362.35, then $55 went to interest and 307.35 went to principal. What is the question?

sorry if i confused you...thats not MY program...just an example the teacher gave us...

the thing i want to know is: how do you determine that $55 of the monthly goes to interest and the rest goes to principle...?

 

[bobdelt]

lets say you have a 1000 note, 10% interest, and you make 150 dollar yearly payments.

After the first year, you would have accrued 100 dollars of interest (10% x 1000)

The first one hundred dollars of your payments goes towards the interest. The rest the pricinpal. So 100 interest, 50 principal.

So the amount to the principal is just the amount in excess of the interest.

Does that answer your question? For the mortgage since youre paying it off in a set amount of time you need to use tables and a bit of work or a financial calculator to figure out the payments.

 

[KLin]

say you took out a 15 year loan of $37916 at 8% APR. Say the interest is accrued monthly

37916*(.08/12)=~$252 accrued in a month
Monthly payment of 362.35-252 = ~109.57 going to the principal for that first month.

 

[Journer]

Originally posted by: bobdelt
lets say you have a 1000 note, 10% interest, and you make 150 dollar yearly payments.

After the first year, you would have accrued 100 dollars of interest (10% x 1000)

The first one hundred dollars of your payments goes towards the interest. The rest the pricinpal. So 100 interest, 50 principal.

So the amount to the principal is just the amount in excess of the interest.

Does that answer your question? For the mortgage since youre paying it off in a set amount of time you need to use tables and a bit of work or a financial calculator to figure out the payments.

awesome! thats what i needed...so BASICALLY, for my program: monthly AR * principle = amt paid that month towards interested ...
example:
monthly AR = 0.0045833333333333333333333333333333 (5.5 / 1200)
0.0045833333333333333333333333333333 * 12000 (loan amt) = 55
subtract 55 from monthly payment (362.351) = 307.351, which is the amount paid towards principle that month...THEN...you subract that 307.351 from 12000...which gives you 11692.6...then you multply THAT by monthly AR (the long ass decimal) and you get 53.whatever and the whole thing starts over...

thanks so much!

 

[dullard]

Originally posted by: Journer
sorry if i confused you...thats not MY program...just an example the teacher gave us...

the thing i want to know is: how do you determine that $55 of the monthly goes to interest and the rest goes to principle...?

Yes you confused me, you specifically stated that you "know how to do: ...find the interest paid." Thus, I'm confused now that you are asking how to find the interest paid.

KLin described the equation properly.