Just this morning TWC prepared an amortization schedule for a client who purchased a new pickup truck for his business. Not much to it anymore, the micro-gremlins jogging on the dinky treadmills down inside the innards of Excel do most of the heavy lifting. All we idea guys do is make sure that the numbers are right and that they're in the proper place.
It was different back in the Jurassic era. Using nothing but a good ten key adding machine with a fresh ribbon and plenty of tape (adding machine paper), TWC could prepare an amortization table by hand pretty quickly.
There is a formula that, when properly applied, will reveal the precise monthly interest figure for the entire duration of any loan. A thirty year mortgage required 360 separate calculations, each based upon the one that went before, but once you got a rhythm going it wasn't too bad. Truth be known, adding long strings of figures from check stubs and amortization tables at light speed is probably where the tendinitis originated. 20/20 hindsight, but who knew?
Upon completion, we'd tear off the adding machine tape, carefully folding it just so, and then tape it into the client's folder for future reference. You'd be surprised at the number of mistakes the lenders made that we caught.
Though the formula was long ago committed to memory, it has since evaporated into the ether leaving moi simply and completely clueless as to its composition or application. Then again, almost nobody knows how to make a buggy whip, rebuild a Holley carburetor, or repair a tube radio, neither.
TWC 🍷Photo Credit (unless otherwise noted): ©TWC, all rights reserved