From: dbinford@convex.com (David Binford)
Newsgroups: misc.invest.real-estate
Subject: Re: 15 year vs. 30 year loans
Date: 26 Aug 92 22:25:42 GMT
Distribution: usa
Organization: Engineering, CONVEX Computer Corp., Richardson, Tx., USA
X-Disclaimer: This message was written by a user at CONVEX Computer
              Corp. The opinions expressed are those of the user and
              not necessarily those of CONVEX.

In article <1992Aug26.155651.27836@cbfsb.cb.att.com> eroth@cbnewsf.cb.att.com (elizabeth.s.roth) writes:
>In article <dbinford.714405881@neptune> dbinford@convex.com (David Binford) writes:
>>> + 84,014.48 savings ($432.81 x 12 x 15 at 15%)
>>invest (432.81*12) at 15% compounded annually for 15 years = 215,116.61

>Run that by me again.  $120.06 a month for 30 years can become
>$720,297.88.  Granted I used simple interest instead of compounding,
>but I don't get your figures.  Want to break it down?
>

Sure, here are the numbers, I wrote this program to spit out each years
current balance.  It does not compare exactly with what I had posted but
I didn't spend the time to find where the anomoly is.  The basic principle
is there.  Here are the results:


Monthly payment......... $1440.72
Number of Months.........30		
Monthly Int. Rate........15.00%

Year            Payment number of months into plan
I_pmt           Interest payment on current principle
P_pmt           Incremental payment into the plan
Principle       Current principle = Previous_principle + I_pmt + P_pmt

Year       I_pmt       P_pmt        Principle
  0        $   0.00    $1440.72    $  1440.72
  1        $ 216.11    $1440.72    $  3097.55
  2        $ 464.63    $1440.72    $  5002.90
  3        $ 750.44    $1440.72    $  7194.06
  4        $1079.11    $1440.72    $  9713.88
  5        $1457.08    $1440.72    $ 12611.69
  6        $1891.75    $1440.72    $ 15944.16
  7        $2391.62    $1440.72    $ 19776.50
  8        $2966.48    $1440.72    $ 24183.70
  9        $3627.55    $1440.72    $ 29251.97
  10       $4387.80    $1440.72    $ 35080.49
  11       $5262.07    $1440.72    $ 41783.28
  12       $6267.49    $1440.72    $ 49491.49
  13       $7423.72    $1440.72    $ 58355.94
  14       $8753.39    $1440.72    $ 68550.05
  15       $10282.51    $1440.72    $ 80273.28
  16       $12040.99    $1440.72    $ 93754.99
  17       $14063.25    $1440.72    $109258.96
  18       $16388.84    $1440.72    $127088.52
  19       $19063.28    $1440.72    $147592.52
  20       $22138.88    $1440.72    $171172.12
  21       $25675.82    $1440.72    $198288.65
  22       $29743.30    $1440.72    $229472.67
  23       $34420.90    $1440.72    $265334.29
  24       $39800.14    $1440.72    $306575.16
  25       $45986.27    $1440.72    $354002.15
  26       $53100.32    $1440.72    $408543.19
  27       $61281.48    $1440.72    $471265.39
  28       $70689.81    $1440.72    $543395.92
  29       $81509.39    $1440.72    $626346.03
  30       $93951.90    $1440.72    $721738.65
-- 
/*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ */
  Dave Binford		   (214) 497-4762	    dbinford@convex.COM
  Convex Computer Corp.  P.O. Box 833851   Richardson, Texas 75083-3851
/*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ */
Newsgroups: misc.invest.real-estate