Comedian Sammy Obeid (host of 100 Humans on Netflix) in collaboration with TBS Business School explains loan amortization. Understanding how loans are amortized is important not only to students of finance, but also to anyone who has borrowed money or plans to do so, whether for buying a house or a car, financing an education, or any other purpose. This video provides an entertaining yet rigorous overview of how loan amortization works.
Suggested discussion questions:
- How is the ending loan balance calculated each period?
- How does the term of the loan affect the amortization schedule?
A spreadsheet with calculations corresponding to the three examples in the video is here: https://drive.google.com/file/d/1XD96JmYZSVwlDTnRdlinGAwnZQ1lbnwM/view?usp=sharing
To experiment with loan amortization calculations for different loan durations, you can use the official Microsoft Excel template: https://templates.office.com/en-us/loan-amortization-schedule-tm03986974
To request instructor resources for this video and to receive information about other e-learning videos recorded at TBS, visit: https://tbs.bs/obeid