PLEASE, i need tax help

[Corporate Thug]

can ANYONE tell me how the hell they got the circled numbers??????

http://img340.imageshack.us/my.php?image=img1329large0dr.jpg

 

[jcovercash]

its the year number?

 

[JLGatsby]

Every year you pay more to the principal and less interest, even though the payment is the same.

And interest is deductable. Is that what those numbers are? Interest payed?

 

[Corporate Thug]

ok, so $320 is 8% of 4k, how do u calculate the interest for year 2? 3? 4? 5?

 

[Corporate Thug]

Originally posted by: JLGatsby
Every year you pay more to the principal and less interest, even though the payment is the same.

And interest is deductable. Is that what those numbers are? Interest payed?

yes, its interest paid. just tryin to figure out how its calculated

 

[Reckoner]

8% of the NEW principal after each year. so for the 2nd year it would be 8% of 3320

 

[Sluggo]

Originally posted by: Corporate Thug

Originally posted by: JLGatsby
Every year you pay more to the principal and less interest, even though the payment is the same.

And interest is deductable. Is that what those numbers are? Interest payed?

yes, its interest paid. just tryin to figure out how its calculated

Just use any readily available amortization schedule.

Or you can use the much more labor intensive mathematical process