In Chapter 15 of Math for Business and Life, we discuss amortization. The word amortize comes from the Latin word amort, which means to “kill off.” With mortgage loans that are structured to pay some of the balance each month, we are slowly “killing off” the loan.
Many financial calculators (including the HP10BII+ and TIBAIIPLUS) have amortization registers that can show us how much of each payment (or series of payments) is interest, how much is principal, and the remaining balance. It is difficult to find a spreadsheet program that will amortize accurately. John Webber, the author of Math for Business and Life, has written another book titled Get Rich Slow (with Rental Real Estate). The Publisher of that book, Millrock Publishing Company, created an Excel spreadsheet that DOES amortize accurately. You can access the spreadsheet by clicking below. You will be taken to another page (Get Rich Slow - Millrock Publishing); when you get there click GET FILE HERE (near the top of the page) and when the file opens click Enable Editing (in yellow row at top).