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Solve from present value
The initial principal equals the PV of the level payments under this fee-free constant-rate model. Divide 2,000 by the ordinary-annuity PV factor for thirteen periods at 6%.
Separate the interest and principal parts
| Period | Opening balance | Interest | Principal repaid | Closing balance |
|---|---|---|---|---|
| 1 | 2,000 | 120 | 105.9202 | 1,894.0798 |
| 2 | 1,894.0798 | 113.6448 | 112.2754 | 1,781.8044 |
| 13 | 213.1323 | 12.7879 | 213.1323 | 0 |
Distinguish a rounded cash payment
The table is calculated using the full-precision payment before display rounding. Actually paying a rounded amount each period can leave a residual balance and require a final adjustment. Do not promise an exact zero balance from a rounded printed payment.
Read actual loan terms separately
A real agreement may have fees, irregular dates, payment-day conventions or a different interest quotation. This example is a mathematical amortization exercise, not a loan offer or a recommendation.