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In view of the definition of the amortised cost, the following formula is used for its calculation:
The cumulative total amortisation TA(t_{n}) of payment date t_{n} is defined by

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The following annuity loan is considered: Initially, there is also a charge of 5000 USD. Hence, the first cash flows for the deal are as follows: Applying the calculation method describedmethod described, the calculation of the amortised cost of the deal starts as follows: 
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