HP 10bII+ Financial manual Jdægy, JJ7VÒ, Jygvï

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