I incorrectly assumed I was going to make 8.85% return on Investment, but the 8.85% that folioFN is not really a return on investment calculation apparently. ROI does not equal yield to maturity, correct? The fact is, im only making a 5.8% return on investment which kinda aint that great eh? ROI does not equal yield to maturity, correct?

You're not trying! ROI does equal YTM, its just not the simple multiplicative relationship you want it to be. You need to google and read about amortization. As Fred93 tried to explain to you, part of your initial investment is returned each month. The return on the

money that remains outstanding is 8.85% as demonstrated by the "amortization schedule" included in my last post.

The "formula" you already know, you just refuse to look at it on a monthly basis.

A. The

**PAYMENT** is always the same and given 1.71

B. The initial

**BALANCE** is the purchase price 19.40

C.

**MONTHLY INTEREST** is the annualized interest / 12 = 8.85/12 = 0.7375%

D.

**INTEREST OWED** is always the

**BALANCE * MONTHLY INTEREST** (1st month is 19.40 * .7375 / 100 = $0.143 )

E. The remainder of the PAYMENT is

**PRINCIPLE REPAYMENT** =

**PAYMENT - INTEREST OWED** (1st month is 1.71 - 0.143 = 1.5654)

F. The

**BALANCE** after a payment is the previous

**BALANCE - PRINCIPLE REPAYMENT**Repeat D, E, F for number of payment remaining till balance reaches zero.