calculate the monthly PMT = (loan x 12%) ⎟ 12 mos.) When calculating the I%YR, the FV (a balloon payment) is the entire loan amount, or $1,000,000, while the PV is the loan amount minus the points.

 

Keys:

Display:

Description:

 

 

 

 

 

 

 

 

 

 

 

If necessary, sets 12

 

 

 

 

 

 

 

 

 

 

 

 

payments per year and

 

 

 

 

 

 

@ce

   

End mode.

 

 

 

 

 

 

 

 

10 @



Stores total number of

 

 

 

 

 

 

 

 

 

 

 

 

payments.

v1000000 *

Calculates annual interest

v12 %/



on $1,000,000 ...

 

 

 

 

 

 

 

12

 

 



...and calculates, then

 

 

 

 

 

 

 

 

 

 

 

 

stores monthly payment.

1000000

 

 

 

 

Stores entire loan amount

 

 

 

 

 

as balloon payment.

 

 

 



v-3%=

Calculates, then stores

 

&



amount borrowed (total —

 

 

 

 

 

 

 

 

 

 

 

 

points).

 

 

 

Calculates APR—the yield

 

 



 

 

 

 

 

 

 

 

 

 

 

 

to lender.

Loan with an Odd (Partial) First Period

The TVM menu deals with financial transactions in which each payment period is the same length. However, situations exist in which the first payment period is not the same length as the remaining periods. This first period is sometimes called an odd or partial first period.

The following Solver equation calculates N, I%, PV, PMT, or FV for transactions involving an odd first period, using simple interest for the odd period. The formula is valid for 0 to 59 days from inception to

14: Additional Examples 195

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