User`s guide

Time Value of Money Calculations
77
The amount paid toward interest and principal (13,894.67 + 1,579.84 = 15,474.51) equals
the total of 12 monthly payments (12 × 1,289.54 = 15,474.51). The remaining balance equals
the initial mortgage, less the amount applied toward principal (180,000 - 1,579.84 =
178,42 0.16) .
Amortize the second year:
The amount paid toward interest and principal (13,767.79 + 1,706.69 = 15,474.51) equals the
total of 12 monthly payments (12 × 1,289.54 = 15,474.51). The remaining balance equals the
initial mortgage less the amount applied toward principal (180,000 - 1,579.84 - 1,706.69 =
176,713.49). More money is applied to principal during the second year rather than the first
year. The succeeding years continue in the same fashion.
Example: Amortizing a Single Payment
Amortize the 1
st
, 25
th
, and 54
th
payments of a five year car lease. The lease amount is 14,250
and the interest rate is 11.5%. Payments are monthly and begin immediately.
Set to Begin mode. Press
\¯ if BEGIN annunciator is not displayed.
Table 6-20 Calculating the remaining balance
Keys Display Description
JDÆGY
\Ê
13 – 24 Displays PER and the next range of
periods.
4
-1,70 6.69 Displays PRIN and the principal
paid in the second year.
4
-13,767.79 D ispl ays INT and the interest paid
in the second year.
4
176 ,713. 49 D i sp l ays BAL and the loan balance
after 24 payments.
Table 6-21 Calculating the monthly payment
Keys Display Description
JG\Í
12.00 Sets payments per year.
V\Ú
60.00 Stores number of payments.
JJ7VÒ
11.50 Stores interest per year.
JYGV:Ï
14,250.00 Stores present value.
:É
0.00 Stores future value.