| Today's special ~ Simple Mortgage Calculator
In EXCEL, there is a function called "PMT".
The Bank will quote the annual interest rate. Divide it by 12, we've got the monthly rate (0.00175).
Years for the payment would be 20 years. Times 12, we've got 240 payments in total.
The negative One Million represents the loan amount.
Monthly payments are divided into interest component and the principal component.
Monthly interest was calculated from the annual interest rate divided by 12, times the loan amount.
Monthly payments minus the interest component is the amount for principal repayment.
The loan amount is then reduced by this amount every month. That is why the monthly interest component will decrease with time.
The calculation for the car loan are different. We call it Flat Rate. The total interest was first calculated by multiplying the period, principal and the interest rate. And then divide it by the number of installments.
That means the total interest paid will be higher with the same quoted annual interest rate.
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| Year-end Annual Dinners
We are in the last quarter of the year, and some of our colleagues have asked about our plan for the traditional year-end party. After considering the matter, the management felt that while the economy is showing signs of improvement, the overall financial markets remain fragile. We also note that our firm is well on the way to renewed recovery and growth, but we need to be all the more sensitive to likely market perceptions and interpretations of our actions. In light of this, the management has decided not to hold the annual year-end dinners this year. I am sure we can count on your understanding and support of this decision. It is our hope that in the near future, we will be able to bring back our tradition of coming together at the end of the year.
Warm regards,
Shengman
God bless Citibank..... |
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