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What is it for: Calculates the repayment schedule of a loan, that is, how the payments are distributed over a certain period.
How it works: The amount of the periodic installments and the amount that covers interest and capital are calculated.
Calculation: Interest rates are used to calculate the principal amount and the interest to be paid periodically.
Use: Useful for loans, mortgages and financing.
Formula: Payment = Principal * (Interest Rate / (1 - (1 + Interest Rate)^(-n)))
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