PRIORA® 4-WAY DEBT CALCULATOR
PRIORA® 4-WAY DEBT CALCULATOR FEATURES EXTENDED:
Priora® 4-Way Debt Calculator is used to determine not only the monthly payment, but also any of the four components of debt repayment. The four components are principal, interest rate, term of the loan or the monthly payment. When three of these four components are known, the fourth can be determined using the Priora® 4-Way Debt Calculator. Priora® 4-Way Debt Calculator also presents the amortization of a loan with up to a 480 month amortization. Most loans extend only to 360 months amortization. Priora® 4-Way Debt Calculator can be used to determine how much total the repayment of a loan really is simply by changing the amount of the monthly payment based on various scenarios developed by the business owner. For example. A loan of $80,000 amortized for 120 months (10 years) at 6% interest calls for a loan payment of $888.16, based on a 365 day year (using a 360 day year, like most banks use, will increase the payment to $891.52, an increase of $3.36 for each of the 120 months. Over the life of this loan the business owner will pay $403.20 in extra interest, even though the amount borrowed, the amortization of the loan and the interest rate are all identical. The difference lies in the lender using a 360 day year (more expensive to the borrower) or a 365 day year (less expensive to the borrower). Be sure to ask your lender to use a 365 day year and not a 360 day year when determining the interest rate on your business loan. Banks are required to use a 365 day year for all consumer and mortgage loans by law. But business owners are not protected by such laws since they are deemed to be more knowledgeable, since they are in business! Unfortunately, that is not the case.