Financial Calculations Worksheet Page 22
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3019 - 5
Amortization of a Loan
The following calculation is performed after conversion from the nominal interest
rate to the effective interest rate, and the result is used for all subsequent
calculations.
i = I%'÷100
Press 4 (
AMT
) from the initial screen 1 to display the following input screen for
amortization.
n
PM1 ................ first installment of installments 1 through
n
PM2 ................ second installment of installments 1 through
n
..................... installments
I
% ................... interest rate
PV
.................. principal
PMT
............... payment for each installment
FV
.................. balance following final installment
P
Y
/
.................. installments per year
C
Y
/
................. compoundings per year
BAL
• {
} ... {balance of principal after installment PM2}
INT
PRN
• {
}/{
} ... {interest}/{principal} portion of installment PM1
INT
PRN
• {Σ
}/{Σ
} ... {total principal}/{total interest} from installment PM1 to
payment of installment PM2
Example
Calculate the monthly installment due on a $140,000 15-year
home mortgage at an annual rate of 6.5%, compounded
semiannually.
PRN
INT
Also calculate
and
for the second year (24th
for installment 49, and Σ
Σ
BAL
INT,
PRN
installment),
for
installments 24 through 49.
Display the TVM Menu and then press 2(CMPD).
In the set up screen, specify “End” for Payment and then press J.
P.7
342
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