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Frequently Asked Questions and Answers
Q: What is the difference among different versions?
Shareware Edition:
Q: The interest is coming down, I want to have half year close mortgage then convert to 5 year mortgage.
How can I do the analysis?
You can do two analyses, one is for half year and the other is for 5 years.
Q: This software is very flexible. When you enter any two of Period, Payment and Principal, it can calculate
the third one. But I get slightly different result. Why?
All the results are correct. Mathematically, the solutions are not unique. The difference is on the last payment.
Example:
compound times: 2
interest: 10%
frequency: monthly
Principal: $10,000
if you input payment as $1,000, you get 11 month as result. if you input period as 11 month, you get payment
of $954.23 as result.
The difference is on the last payment. Usually the last payment is not a full payment. In our examples, they are
$471.61 and $946.50. That is: if you pay less each time, you pay more in the end. Actually, any payments between
$954.23 and $1,000 satisfy your criteria. The payment given by this program is more evenly spread.
Q: How to understand 'Accumulated Interest'?
'Accumulated Interest' is the sum of all interest you pay. It gives you a rough idea about the total interest
you pay for the whole duration. But, you should know that the amount is not as valuable as it looks because each
piece of interest adding to the sum is at its value at that date, not today. Each dollar you pay next year does
not have the same value of one dollar of today, because of the interest, inflation and other factors.