AMMORTAMENTO ITALIANO (QUOTA CAPITALE COSTANTE)- Matematica Finanziaria

Link with all the features of the AMORTIZATION course https://andreailmatematico.it/ammorta... Also read the BLOG https://andreailmatematico.it/matemat... In this blog, we discuss Italian amortization, also known as constant capital amortization. Imagine borrowing a certain amount of capital that we must repay in n installments. CONSTANT CAPITAL AMOUNT Since all principal installments are constant, to calculate the principal installment Q, we divide the principal S by the number of installments n. Q=S/n REPAYED DEBT For every principal installment we pay, our repaid debt Ek increases by that amount. Therefore, after paying 3 principal installments, the repaid debt E3 amounts to q times the principal installment. In general, after k principal payments, the repaid debt Ek amounts to k times the principal, i.e., k times S/n. Ek=k*S/n RESIDUAL DEBT The residual debt is the remaining portion of the capital that we still have to repay. So, imagining that we divide this capital S into n installments, once we have repaid k installments, we still have n-k installments to repay. Therefore, the residual debt Dk amounts to n-k times the principal, i.e., n-k times S/n. Dk=(n-k)*S/n INTEREST RATE The interest on a loan is calculated based on the outstanding debt from the previous period. Therefore, the interest installments Ik that we pay at time k are calculated on the outstanding debt at time k-1. At that time, n-k+1 principal installments will remain unrepaid, i.e., one more than at time k. Therefore, the calculation of the kth interest rate Ik will be equal to: Ik=(n-k+1)*S/n*i CONSTANT INSTALLMENT The installment is the sum of the principal and the interest. Its formula is: R=S/n*[1+(n-k+1)*i] Access link to the AMORTIZATION course https://andreailmatematico.it/corso/p... Access link to all financial mathematics video courses https://andreailmatematico.it/corsi-m... -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- To learn more, you can visit my website here: https://andreailmatematico.it/ Subscribe to my channel here:    / andreailmat.  . Visit my website https://andreailmatematico.it/ Follow me on Facebook:   / lamatematica.  . Follow me on Instagram