Example

For period May 1, 1981 to March 1, 1982 (Renewal Date)
Interest to be paid as at April 1
Principal for calculating differential $35,694.93

Month

Interest which would
have been paid

Principal
payment

Monthly
payment

Principal
balance

 

Factor
(.0065581970)

 

(Payment Per)
'000$

 

May 1, 81

312.83

39.17

352.00

35,655.76

June 1, 81

312.49

39.51

352.00

35,616.25

July 1, 81

312.14

39.86

352.00

35,576.39

August 1, 81

311.79

40.12

352.00

35,536.18

Sept. 1, 81

311.44

40.56

352.00

35,495.62

Oct. 1, 81

311.09

40.91

352.00

35,454.71

Nov. 1, 81

310.73

41.27

352.00

35,413.40

Dec. 1, 81

310.37

41.63

352.00

35,371.81

Jan. 1, 82

310.00

42.00

352.00

35,329.81

Feb. 1, 82

309.63

42.37

352.00

35,287.44

March 1, 82

309.26

42.74

352.00

35,244.70

 

3,421.77

     

Difference 860 ÷ 11 payments = 78.27 per month