An Interest Only series is used to generate a series of cash flows equal to the amount of interest that has accrued since the last payment or withdrawal. TValue will calculate the interest payment amounts. Do not use this type of series if you wish to specify the amount of the payment.
To calculate payments that cover interest only
- Click the Home ribbon's Special Series menu button in the Detail group.
Tip: You could also press [F2] from the Amount field of a cash flow line.
- Select Interest Only from the drop-down menu. The cash flow line will expand to include the Special Series detail.
TValue will automatically calculate interest only payment amounts when the amortization schedule is prepared. After you select the Interest Only series as shown, you can enter the number of interest only payments in the Number field in the cash flow matrix.
For an Interest Only series, if 60 payments are specified in the Number field on the schedule, the series will create 60 payments that cover interest for each payment period. The amount of interest depends on the note balance, interest rate, compound period, and time between payments.
Example screenshots
Cash Flow Matrix
Amortization Schedule Report
