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what is the idea of prospective method of calculation amortization? how it differs from retrospective method?

what is the idea of prospective method of calculation amortization? how it differs from retrospective method?
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The prospective method of amortization is forward looking and it is only computed beyond the present period of time. It considers the capital outstanding as the present value of future repayments under the loan. The retrospective method on the other hand takes the amortization backward in time and is calculated and applied since a previous date. It computes capital outstanding as the sum of the original loan -all repayments to date.

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