- 1). Enter the principal you owe. For example, you owe $10,000.
- 2). Enter your monthly payments on the credit card. Be sure to make them negative. In the example, use -$10. For any compound interest calculator, you need to be sure this amount is negative. Not all calculators allow a negative, so you may need to search to find one. One is available in the References.
- 3). Type your interest rate. In the example, assume 5%
- 4). Type the number of years you will make that payment. In the example, type 1 year.
- 5). Press calculate. In the example, after one year of paying only $10 on the $10,000 you owe, you will have accrued $376.75 of negative amortization from compound interest.
SHARE
