HP 20B manual 10Y, 1400 00V, Creating an Amortization Schedule

Time Value of Money

Enter the values for the TVM keys for the example below. Press Afollowed by <or >to view the amortization

schedule.

Creating an Amortization Schedule

You borrow 140,000.00 for 360 months at 10% interest. Create an amortization schedule for the loan. How much interest did you pay for the first year? What is the balance of your loan after the first year? See Table 3-4. The example below is shown with RPN as the active operating mode.

Table 3-4Amortization Example

Keys Display Description

12:

[

Inputs 12 as the number of payments per year.

30:

^

10Y

Inputs 360 (30 times 12 payments per year) as the number of payments for the 30-year loan.

Inputs 10 as the interest rate percentage per year.

1400

00V

Inputs the value of the loan at the time of the first payment.

0F

M

A

<

<

<

<

Inputs 0 as the future value of the loan (zero balance).

Calculates the monthly payment.

Displays the number of periods to group together in the amortization schedule. Default is the current value of P/YR.

Displays the first period of the group of periods to amortize.

Displays the current balance remaining after the first year.

Displays the current amount of the principal applied towards the loan for the first year.

Displays the amount of interest paid on the loan for the first year. The amount of your payments applied towards interest for the first year is about 14,000.00.

<

Displays the first payment in the next period to amortize (the second year). Note that the calculator automatically updates Start to the next group of periods to amortize.

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