
4.
Select PMT and tap . The PMT eld shows –984.10. In other words, the monthly payments are
$948.10.
5. To determine the balloon payment or future value (FV) for the mortgage after 10 years, enter 120 for N,
select FV, and tap .
The FV eld shows –127,164.19, indicating that the future value of the loan (that is, how much is still owing)
as $127,164.19.
Amortizations
Amortization calculations determine the amounts applied towards the principal and interest in a payment, or
series of payments. They also use TVM variables.
Calculating amortizations
1.
To open the Finance app, press and select Finance.
2. Specify the number of payments per year (P/YR).
3. Specify whether payments are made at the beginning or end of periods.
4. Enter values for I%YR, PV, PMT, and FV.
5. Enter the number of payments per amortization period in the Group Size box. By default, the group size
is 12 to reect annual amortization.
6.
Tap . The calculator displays an amortization table. For each amortization period, the table
shows the amounts applied to interest and principal, as well as the remaining balance of the loan.
Amortization for a home mortgage example
Using the data from the previous example of a home mortgage with balloon payment (see Another example:
TVM calculations on page 328), calculate how much has been applied to the principal, how much has been
paid in interest, and the balance remaining after the rst 10 years (that is, after 12 × 10 = 120 payments).
1. Make sure that your data matches that shown in the following gure.
Amortizations 329
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