The amount paid toward interest and principal (13,894.67 + 1,579.84 = 15,474.51) equals the total of 12 monthly payments (12 × 1,289.54 = 15,474.51). The remaining balance equals the initial mortgage, less the amount applied toward principal (180,000 - 1,579.84 = 178,420.16).

Amortize the second year:

Table 6-20 Calculating the remaining balance

Keys

Display

Description

 

 

 

JDÆGY

 

periods.

 

13 – 24

Displays PER and the next range of

\Ê

 

 

 

 

 

4

-1,706.69

Displays PRIN and the principal

 

paid in the second year.

 

 

 

4

-13,767.79

Displays INT and the interest paid

 

in the second year.

 

 

 

4

176,713.49

Displays BAL and the loan balance

 

after 24 payments.

 

 

 

The amount paid toward interest and principal (13,767.79 + 1,706.69 = 15,474.51) equals the total of 12 monthly payments (12 × 1,289.54 = 15,474.51). The remaining balance equals the initial mortgage less the amount applied toward principal (180,000 - 1,579.84 - 1,706.69 = 176,713.49). More money is applied to principal during the second year rather than the first year. The succeeding years continue in the same fashion.

Example: Amortizing a Single Payment

Amortize the 1st, 25th, and 54th payments of a five year car lease. The lease amount is 14,250 and the interest rate is 11.5%. Payments are monthly and begin immediately.

Set to Begin mode. Press \¯if BEGIN annunciator is not displayed.

Table 6-21 Calculating the monthly payment

KeysDisplay Description

JG\Í

12.00

Sets payments per year.

 

 

 

 

V\Ú

60.00

Stores number of payments.

 

 

 

 

JJ7VÒ

11.50

Stores interest per year.

 

 

 

 

JYGV:Ï

14,250.00

Stores present value.

 

 

 

 

:É

0.00

Stores future value.

 

 

 

 

Time Value of Money Calculations 77