User's Manual

20070201
BAL 0 = PV ( INT 1 = 0 and PRN 1 = PMT at beginning of installment term)
u Converting between the nominal interest rate and effective interest rate
The nominal interest rate ( I % value input by user) is converted to an effective interest rate
( I % ' ) for installment loans where the number of installments per year is different from the
number of compound interest calculation periods.
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.
Press 4 (AMT) from the Financial 1 screen to display the following input screen for
amortization.
4 (AMT)
PM1 .............................. fi rst installment of installments 1 through n
PM2 .............................. second installment of installments 1 through
n
n .................................. installments
I % ................................ interest rate
PV ............................... principal
PMT ............................ payment for each installment
FV ............................... balance following fi nal installment
P / Y .............................. installments per year
C / Y .............................. compoundings per year
a : INT PM1 = I BAL PM1–1 × i I × (PMT sign)
b : PRN
PM1 = PMT + BAL PM1–1 × i
c : BAL
PM2 = BAL PM2–1 + PRN PM2
d :
Σ
PRN = PRN PM1 + PRN PM1+1 + … + PRN PM2
e :
Σ
INT = INT PM1 + INT PM1+1 + … + INT PM2
PM2
PM1
PM2
PM1
a : INT PM1 = I BAL PM1–1 × i I × (PMT sign)
b : PRN
PM1 = PMT + BAL PM1–1 × i
c : BAL
PM2 = BAL PM2–1 + PRN PM2
d :
Σ
PRN = PRN PM1 + PRN PM1+1 + … + PRN PM2
e :
Σ
INT = INT PM1 + INT PM1+1 + … + INT PM2
PM2
PM1
PM2
PM1
I%' =
I%
(1+ ) –1
[C / Y ]
[P / Y ]
100 × [C / Y ]
{ }
× 100
I%' =
I%
(1+ ) –1
[C / Y ]
[P / Y ]
100 × [C / Y ]
{ }
× 100
i = I%'÷100 i = I%'÷100
7-5-2
Amortization