# Thread: How can i calculate Mortgage at the end of the year??

1. I have
If the loan amount is = 100000
and the loan term is = 10 years
and interest is = 5.8%

and i calculated fortnightly repayment as
P =(100000 * .0572275/26) / [1 - 1 / (1 + .0572275/26)^260] = ~505.52

But i am stuck here that how the balance at the end of the first year is solved = 92402
and similarly for second year = 84352????

plz help me !!!

2. Originally Posted by zeeshanjamal
I have
If the loan amount is = 100000
and the loan term is = 10 years
and interest is = 5.8%

and i calculated fortnightly repayment as
P =(100000 * .0572275/26) / [1 - 1 / (1 + .0572275/26)^260] = ~505.52

But i am stuck here that how the balance at the end of the first year is solved = 92402
and similarly for second year = 84352????

plz help me !!!
Whats wrong with that ?
balance owing is only reduced \$8000 in the first year, because so much of the repayments go to pay off interest. As the balance is reduced, interest is reduced and the repayments reduce the balance moer each year.. The loan is repayed faster and faster toward the end.

3. To get the principle outstanding just PV the value of all outstanding payments

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