Section 3: Basic Financial Functions

61

Example 1: In Example 1 on page 59, we calculated that the payment amount on a 29-year, $243,400 mortgage at 5.25% annual interest compounded monthly is $1,363.29. If the seller requests a balloon payment at the end of 5 years, what would be the amount of the balloon?

KeystrokesDisplay

fCLEARG

5gA 60.00

5.25gC 0.44

243400$ 243,400.001363.29ÞP –1,363.29

Calculates and stores n.

Calculates and stores i.

Stores PV.

Stores PMT (with minus sign for cash paid out).

–1,363.29Sets payment mode to End.

 

M

–222,975.98Amount of balloon payment.

 

Example 2: If you deposit $50 a month (at the beginning of each month) into a new account that pays 6.25% annual interest compounded monthly, how much will you have in the account after 2 years?

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