Loan Amortization

Shown are two different amortization schedules for a loan and details the amortization method for both amortization schedules, based on discounting the loan payments back to their present value at the date of the loan (shown as a cash flow diagram), amortization schedule (1) (begiining loan balance + interest payment i payment = ending balance), amortization schedule (2) (payment – interest = principal and subtracts from previous loan balance), both amortization schedules show calculations and detail the exact steps required to amortize loan payments and interest, based on the amortization schedules accounting calculations are made for recording the loan on the balance sheet by Allen Mursau