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# Press to display p2 if you pressed when p1 was

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Unformatted text preview: Example: TVM/Amortization Application This two-part example shows you how to use the TVM and Amortization worksheets to compute the monthly payment on a 30-year loan and then generate an amortization schedule for the first three years of the loan. Example: Part 1 Using the TVM worksheet, determine the monthly payment on a 30-year mortgage with a loan amount of \$120,000 and an annual percentage rate of 9.125%. Procedure Keystrokes Display Clear TVM worksheet. 0.00 If necessary, set payments per year to 12. 12 P/Y = If necessary, select endof-period payments. END Return to standardcalculator mode. 12.00 0.00 Enter loan amount. 120000 PV = 120,000.00 Enter interest rate. 9.125 I/Y = 9.13 Enter number of payments. 30 , N= 360.00 PMT = 976.36 Compute payment. The computed monthly payment is \$976.36. Because PMT is money paid out, it is displayed as a negative number. 26 Chapter 2: Using the TVM and Amortization Worksheets Example: Part 2 Use the Amortization worksheet to generate an amortization schedule for the first three years of the loan. Assume that the first payment is in April; therefore, the first year has 9 payment periods. There are 12 payment periods per year thereafter. Procedure Keystrokes Select Amortization worksheet. \ Clear worksheet. Display P1 (old contents) P1 = 1.00 P2 = 9.00 Set ending period to 9. 9 View first year amortization data. BAL = PRN = INT = 119,407.46 592.54 8,194.70 Change beginning period to 10. 10 P1 = 10.00 Change ending period to 21 P2 = 21.00 View second year amortization data. 21 BAL = PRN = INT = 118,551.85 855.61 10,860.71 Move to P1 and press to enter next range of payments P1 = 22.00 View P2. P2 = 33.00 View third year amortization data. BAL = PRN = INT = 117,614.86 936.99 10,779.33 Note that the principal and interest are displayed as negative because they are outflows. Chapter 2: Using the TVM and Amortization Worksheets 27 28 Chapter 2: Using the TVM and Amortization Worksheets CHAPTER 3 Using the Cash Flow Worksheet Three keys are avai...
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