User Manual

5: Time Value of Money 69

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9

Keys: Display: Description:

   Display TVM menu.

    Clears history stack and

TVM variables.





   

If needed: sets 12 payment

periods per year; End

mode.

  Pressing

first multiplies

30 by 12, then stores this

number of payments in N.

11.5   Stores annual interest rate.

630







Stores a negative monthly

payment.

  Calculates loan amount.

12000



Calculates total price of the

house (loan plus down

payment).

Example: A Mortgage with a Balloon Payment. You’ve taken out a

25-year, $75,250 mortgage at 13.8% annual interest. You anticipate

that you will own the house for four years and then sell it, repaying the

loan in a “balloon payment.” What will be the size of your balloon

payment?