# Annuity Payment for a $1 Loan : Table Creator Annuity Payment Tables Interest Rate (i) : Columns  Columns (20 max): Starting Rate: % Increments: % Periods (n) : Rows  Rows (50 max): Starting Period: Increments: ## About this Table Creator Create a printable table for the annuity (mortgage) payment (PMT) of a borrowed amount of$1. Payment (PMT) is calculated from the formula

$PMT = PV\times i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$

Setting PV = $1 the equation becomes: $PMT = \1\times i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$ where PMT is the recurring, identical, payment for a loan of$1, i is the interest rate in decimal form and n is the number of periods (n ≠ 1). PMT is the Payment to be paid at the end of each equal period on a loan of $1 an Interest Rate i% per period for n Number of Time Periods to payoff the loan or mortgage. Taking out the$1 we simplify to:

$PMT = i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$

You can then look up PMT in the table and use this value as a factor in calculating the annuity payment amount, series of payments.

For example, if $1 is borrowed at i = 2% interest per time period and the amount is to be paid back in equal amounts over n = 10 time periods then the amount paid back per time period is 0.1113 *$1 = $0.11 rounded to cents.  CalculatorSoup.com n / i 2.00% 2.25% 2.50% 2.75% 3.00% 1 1.0200 1.0225 1.0250 1.0275 1.0300 2 0.5150 0.5169 0.5188 0.5207 0.5226 3 0.3468 0.3484 0.3501 0.3518 0.3535 4 0.2626 0.2642 0.2658 0.2674 0.2690 5 0.2122 0.2137 0.2152 0.2168 0.2184 6 0.1785 0.1800 0.1815 0.1831 0.1846 7 0.1545 0.1560 0.1575 0.1590 0.1605 8 0.1365 0.1380 0.1395 0.1410 0.1425 9 0.1225 0.1240 0.1255 0.1269 0.1284 10 0.1113 0.1128 0.1143 0.1157 0.1172 CalculatorSoup.com Example: You want to borrow$1,000 at an annual interest rate of 3% per year and pay it back over 5 years.  How much will you need to pay per year to pay back the loan?

1. Create a table that includes i = 3% and n = 5 (see obove table)
2. Look up PMT to find 0.2184
3. Use it as a factor to calculate $1,000 * 0.2184 =$218.40 which is your payment amount per year.

Cite this content, page or calculator as:

Furey, Edward "Annuity on \$1 Loan Table Creator" From http://www.CalculatorSoup.com - Online Calculator Resource.