Loans (was Re: Unrealized/Realized Gains and Losses)

[Derek Atkins]

Paul Lussier <pll@mclinux.com> writes:

> Couldn't you accomplish this by setting up the accounts in a manner 
> similar to:
> 
> 	Liability:
> 		Loan1:
> 		    Principle:
> 		    Interest:
> 
> Then, whenever you create a loan payment you split the loan into 
> Principle and Interest portions?  That way you could always tell how
> much you've paid toward the loan, and how much Interest you've paid?

That presupposes I know how much of my payment is going to interest
vs. principal each payment-period.  I don't.  That's why I want it
pre-computed automagically.

> Of course, if you were going to use this under a "recurring" 
> transaction scheme (which, AFAIK, is not yet implemented), then you'd
> run into trouble, since typically loan payments are the same split
> for each payment.  As the principle portion increases, usually the
> interest portion decreases until the loan is paid in full.

Indeed.  The fact that the split between principal and interest
changes is exactly why I want to interest portion computed on my
behalf by the system.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
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