“End” selected for the Setup screen Payment setting: BAL0 = PV

“Begin” selected for the Setup screen Payment setting: INT1 = 0 and PRN1 = PMT

uConverting 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%

 

[C/Y ]

 

 

[P/Y ]

 

I%' ={(1+

 

) –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(AMORTZN) from the Financial 1 screen to display the following input screen for amortization.

4(AMORTZN)

PM1.......

first installment of installments 1 through n

PM2.......

second installment of installments 1 through n

n........... installments

I% ........

interest rate

PV ........

principal

PMT .....

payment for each installment

FV ........

balance following final installment

P/Y .......

installments per year

C/Y .......

compoundings per year

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