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Loan Amortization Sensitivity Analysis

This document discusses loan amortization basics and sensitivity analysis. It provides inputs like an initial loan principal of $300,000, annual interest rate of 8%, and repayment period of 30 years. It then shows outputs like the breakdown of loan payments into interest and principal components each year over the repayment period. It also includes data tables that analyze the sensitivity of the interest and principal components to changes in the annual interest rate.

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Thanh Huyền Trần
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59 views2 pages

Loan Amortization Sensitivity Analysis

This document discusses loan amortization basics and sensitivity analysis. It provides inputs like an initial loan principal of $300,000, annual interest rate of 8%, and repayment period of 30 years. It then shows outputs like the breakdown of loan payments into interest and principal components each year over the repayment period. It also includes data tables that analyze the sensitivity of the interest and principal components to changes in the annual interest rate.

Uploaded by

Thanh Huyền Trần
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

LOAN AMORTIZATION Basics and Sensitivity Analysis

Inputs
$50,000
Loan Amortization Payment
Interest Component
Present value $300,000 30 $45,000 Principal Component
$40,000
Interest rate / year 8.00% 8 $35,000
$30,000
Number of years 30 30 $25,000
$20,000
$15,000
$10,000
$5,000
$0
0 5 10 15 20 25 30
Year

Outputs
Year 1 2 3 4 5 6 7 8 9
Beg. Principal Balance
Payment
Interest Component
Principal Component

Data Table: Sensitivity of the Interest Component to the Interest Rate / Year
Input Values for Output Formula: Interest Component
Interest rate / year
Data Table: Sensitivity of the Principal Component to the Interest Rate / Year
Input Values for Output Formula: Principal Component
Interest rate / year

Principal And Interest Payments Over Time


$25,000
Principal And Interest Components

8% Interest Component

$20,000

7% Interest Component
$15,000

$10,000
7% Principal Component

$5,000
8% Principal Component

$0
0 5 10 15 20 25 30
Time (Years)

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