I am trying to understand how amortization schedules are created. While i can find some information based on monthly and yearly rates, I cannot find any that show how to calculate schedules based on a daily rate.
By way of example... If I want to borrow 500 over 6 months based on a daily rate of 0.8% (292% APR) how would an amortization payment schedule of Principle & Interest be calculated?
For additional context, payments are monthly. Assume the loan was started on 1 Jan with the first payment due on 1 Feb, and remaining 5 payments on the first of each month following.
I should add that I am looking for a Mortgage-Style Amortization. In this case each installment should be roughly the same amount although the proportion of the principal value should increase with each installment.
Here is a Google Sheet showing the math.
Since your payments are monthly, I am assuming monthly compounding. I took your annualized rate of 292% (2.92 in decimal) and divided it by 12 - for a monthly rate of 2.43% (0.243333 in decimal). I then plugged that in to the payment formula - and got a payment of $166.82... which then amortizes over the following six periods.