HP 20b Consultant Financial, 30b Professional manual Calculating Payments on a Loan

Figure 1 illustrates a cash flow diagram and how the data in the diagram corresponds to the TVM keys. For a complete list of keys used for TVM problems, along with their descriptions, see Table 3-1.

To save values for the TVM variables, enter the desired number, followed by the corresponding TVM key. To calculate an unknown value, enter all known values and press the key of the item you want solved.

Table 3-1 TVM Keys

Keys	Description
N	Stores or calculates the number of payments or compounding periods.
:^	Multiplies a value by the number of payments per year and stores as N.
Y	Stores or calculates the nominal, annual interest rate.
V	Stores or calculates the present value (PV). To a lender or borrower, PV is the amount of a
	loan; to an investor, PV is the initial investment. PV always occurs at the beginning of the first
	period.
M	Stores or calculates the amount of each periodic payment.
:[	Stores the number of payments or compounding periods per year. This value is 12 by default,
	but it maintains its current entered value when TVM Reset is used.
F	Stores or calculates the future value (FV), a final cash flow. FV always occurs at the end of the
	last compounding period.
:?	Sets Begin mode (BEG). Payments occur at the beginning of each compounding period.
:]	Sets End mode (END). Payments occur at the end of each compounding period.

Calculating Payments on a Loan

You borrow 140,000.00 for 30 years (360 months) at 6.5% annual interest, compounded monthly. What is your monthly payment to the lender? Note: the following example is calculated with RPN set as the operating mode.

At the end of the 30 years, you expect to have a zero balance (FV=0). The example is calculated with RPN set as the operating mode

28 Time Value of Money