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F0069
* Property of STI Page 1 of 5
Amortization & Sinking Fund
AMORTIZATION & SINKING FUND
Amortization of a Debt
Amortization Table – a table that shows how much of the amortization is applied to pay the interest and reduce the outstanding principal.
Sinking Fund – it is designed to accumulate a specific sum of money within a specified date.
F0069
* Property of STI Page 2 of 5
Amortization & Sinking Fund
Cons
truc
tion
of
an A
mor
tiza
tion
Sch
edul
e
Form
at
F0069
* Property of STI Page 3 of 5
Amortization & Sinking Fund
Cons
truc
tion
of
an A
mor
tiza
tion
Sch
edul
e
Exam
ple
1: A
mor
tiza
tion
Tab
le
F0069
* Property of STI Page 4 of 5
Amortization & Sinking Fund
Cons
truc
tion
of
an A
mor
tiza
tion
Sch
edul
e
Exam
ple
2: A
mor
tiza
tion
Tab
le
F0069
* Property of STI Page 5 of 5
Amortization & Sinking Fund
Construction of an Amortization Schedule
