Financial Calculations Worksheet Page 16
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3019 - 3
Compound Interest Calculations
u u u u u Number of installments
Example
Calculate the number of years it will take to repay a $60,000
loan borrowed at 5.5%, compounded monthly, with monthly
installments of $840.
In the set up screen, specify “End” for Payment and then press J.
P.7
Perform the following key operations from the input screen.
c
f.fw
gaaaaw(
PV
= 60,000)
-ieaw(
PMT
= –840)
aw(
FV
= 0)
bcw(Monthly installments)
(Monthly compounding)
1(
n
)
u u u u u Effective interest rate
Example
Calculate (to two decimal places) the effective interest rate
compounded monthly, on a 25-year $65,000 loan repaid with
$460 monthly installments.
P.7
In the set up screen, specify “End” for Payment, “Fix2” for Display, and then press
J.
P.6
Perform the following key operations from the input screen.
= 25 × 12.)
cf*bcw(Input
n
c
gfaaaw(
PV
= 65,000)
-egaw(
PMT
= –460)
aw(
FV
= 0)
bcw(Monthly installments)
(Monthly compounding)
2(
I
%)
336
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