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Subject: Re: Amortization  Date: 5/21/1999 1:56 PM 
Author: jedilevin  Number: 3746 of 128075 
Each Month you are paying interest on what you owe. So if you have a $100,000 loan outstanding at a 7% annual interest rate, the first month you'll pay 7%/12*100,000 in interest = $583.33 in interest. Your payment is $665.30. That leaves $82 that goes towards principal. The next month you still have a loan of $100,000  $82 = $99,918 outstanding. You owe interest in the amount of 7%/12*99,918 = $582.86. And so on So where does the total payment amount come from? As I mentioned before, that amount is $665.30. It's the number you get if you ask t 