Unformatted text preview: Step 1. Calculate interest on principal from date of loan to date of first principal payment Step 2. Apply partial payment to interest due. Subtract remainder of payment from principal Step 3. Calculate interest on adjusted balance that starts from previous payment date and goes to new payment date. Then apply Step 2. Step 4. At maturity, calculate interest from last partial payment. Add this interest to adjusted balance....
View Full Document
- Fall '09
- Remainder, Euclidean algorithm, partial payment