# Prnpm2 pm2 pm1 e int intpm1 intpm11 intpm2 pm2 pm1

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Unformatted text preview: ment (PMT ) a : INTPM1 = I BALPM1–1 × i I × (PMT sign) b : PRNPM1 = PMT + BALPM1–1 × i c : BALPM2 = BALPM2–1 + PRNPM2 d : Σ PRN = PRNPM1 + PRNPM1+1 + … + PRNPM2 PM2 PM1 e : Σ INT = INTPM1 + INTPM1+1 + … + INTPM2 PM2 PM1 BAL0 = PV (INT1 = 0 and PRN1 = PMT at beginning of installment term) 20010101 c 2-5-2 Amortization 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. { I%' = (1+ [C / Y ] } [P / Y ] I% ) –1 ×100 100 × [C / Y ] 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. i = I%'÷100 Press 4 (AMT) from the Financial 1 screen to display the following input screen for interest rate conversion. 4(AMT) PM...
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