Operation Manual

Time Value of Money
31
Creating an Amortization Schedule
You borrow 140,000.00 for 360 months at 10% interest. Create an amortization schedule for
the loan. How much interest did you pay for the first year? What is the balance of your loan
after the first year? See Table 3-4. The example below is calculated with Chain set as the
operating mode, but it can be performed in RPN, Chain, or Algebraic.
Table 3-4 Amortization Example
Keys Display Description
12:[
Inputs 12 as the number of payments per year.
This value is 12 by default, but it maintains its
current entered value when TVM Reset is used.
30:^
Inputs 360 (30 times 12 payments per year) as the
number of payments for the 30-year loan.
10Y
Inputs 10 as the interest rate percentage per year.
1400
00V
Inputs the value of the loan at the time of the first
payment.
0F
Inputs 0 as the future value of the loan (zero
balance).
M
Calculates the monthly payment.
A
Displays the number of periods to group together
in the amortization schedule. Default is the current
value of P/YR.
<
Displays the first period of the group of periods to
amortize.
<
Displays the current balance remaining after the
first year.
<
Displays the current amount of the principal
applied towards the loan for the first year.