Financial Calculations Worksheet Page 10
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3019 - 3
Compound Interest Calculations
Example
Calculate the interest rate required to repay a $2,300 balance
on a loan in two years paying back $100 per month, when
interest is compounded monthly.
Perform the following key operations from the input screen.
= 2 × 12.)
c*bcw(Input
n
c
cdaaw(
PV
= 2,300)
-baaw(
PMT
= –100)
aw(
FV
= 0)
bcw(Monthly installment)
(Monthly compounding)
P/Y
The value you input for
(the
number of installment periods per
2(
I
%)
year) is also automatically input for
C/Y
(the number of compounding
periods per year). You can input
C/Y
another value for
if you want.
u u u u u Loan when final installment is greater than other installments
Input Condition: Total of equal amount payments is greater than the difference
between the loan amount and final payment amount.
Formula Representation of Input Condition:
PV
PMT
FV
,
,
do not equal zero.
×
PV
FV
n
PMT
FV
PV
+
> –
when
>
×
PV
FV
n
PMT
FV
PV
+
< –
when
<
Example
Calculate the interest rate required to repay a $2,500 balance
on a loan in two years (24 installments) paying back $100 per
month and a final $200 installment, when interest is com-
pounded monthly.
Perform the following key operations from the input screen.
= 2 × 12.)
c*bcw(Input
n
c
cfaaw(
PV
= 2,500)
-baaw(
PMT
= –100)
-caaw(
FV
= –200)
bcw(Monthly installment)
(Monthly compounding)
2(
I
%)
330
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