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Amortization Schedule

There have been some questions about the calculation of the amortization schedule within ReversePilot.

The amortization schedule calculates the negative amortization on the loan based on monthly compounding, as this is specified in the Promissory Note.

From Model Loan Agreement:

"2.12.2. Interest shall accrue daily and be added to the Principal Balance as a Loan Advance at the end of each month."

From Model Note:

"Accrued interest shall be added to the Principal Balance as a loan advance at the end of each month."

As you can see, this is calculated based on monthly compounding and matches the calculations on investor.gov: amortization.png