I am working on an Amortized Loan Calculator to get the Monthly Payment that is being sold.
I know that the formula to calculate Amortized Rate is
P=A/{[(1+R)^N]-1}/[R(1+R)^N]
Where
- A = is the total financed
- R = Periodic Interest Rate - ((Rate / 100) / How often the loan interest compounds)
- N = Term in Months
- P = Payment
In my use case the interest will compound monthly so R will be ((Rate / 100) / 12)
But my problem is that I need to be able to factor in advanced payments into the loan.
For example, the lessee agrees to the loan, but will be making 2 payments (first and last) up front. So they would only be responsible for 58 months after that and the first payment would not be due until a month after the loan originates. So obviously this would factor out the interest and Amortization just a bit differently.
Any help or guidance is much appreciated!