The Marshal's monthly payments will be amortized. This means that the interest which they owe will be taken out of the monthly payment first and the remainder will then be applied against the amount they borrowed (the principal or balance of the loan).

3. Use the following directions to amortize the first 4 monthly payments.

1st Monthly Payment:

TOTAL MONTHLY PAYMENT: Enter the monthly payment which you found on the payment chart when completing the disclosure statement.

INTEREST PAYMENT: Multiply the amount borrowed (balance) by the monthly interest rate:

4% / 12 = .33% 6% / 12 = .50% 8% / 12 = .66%

PRINCIPAL PAYMENT: Subtract the interest payment from the monthly payment.

NEW BALANCE: Subtract the principal payment from the old balance. 2nd, 3rd and 4th Monthly Payments:

Follow the same directions you used for the first month, but when computing the interest payment remember to use the new balance at the end of the previous month.

Payment Date	Monthly Payment	Interest Payment	Principal Payment	New Balance
1st Month
2nd Month
3rd Month
4th Month

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