User Manual

Time-Value-of-Money and Amortization Worksheets 39
Example: Computing Payment, Interest, and Loan
Balance After a Specified Payment
A group of sellers considers financing the sale price of a property for
$82,000 at 7% annual interest, amortized over a 30-year term with a
balloon payment due after five years. They want to know:
• Amount of the monthly payment
• Amount of interest they will receive
• Remaining balance at the end of the term (balloon payment)
Computing the Monthly Payment
Change beginning period to 10. # 10
!
P1=
10.00
1
Change ending period to 21. # 21
!
P2=
21.00
1
Display 2nd year amortization data. #
#
#
BAL=
PRN=
INT=
117,421.60
*
-1,507.03*
-7,242.53*
Move to
P1 and press C to enter
next range of payments.
# C
P1=
22.00
1
Display P2. #
P2=
33.00
1
Display 3rd year amortization data. #
#
#
BAL=
PRN=
INT=
115,819.62
*
-1601.98*
-7,147.58*
To Press Display
Set all variables to defaults. &}!
RST
0.00
Set payments per year to 12.
&[ 12
!
P/Y=
12.00
1
Return to standard-calculator
mode.
&U 0.00
Enter number of payments
using payment multiplier.
30 &Z,
N=
360.00
1
Enter interest rate. 7 -
I/Y=
7.00
1
To Press Display