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 calculated with Chain set as the operating mode, but it can be performed in RPN, Chain, or Algebraic.

Table 3-4 Amortization Example

KeysDisplayDescription

12:[

 

Inputs 12 as the number of payments per year.

 

 

 

 

This value is 12 by default, but it maintains its

 

 

current entered value when TVM Reset is used.

 

 

 

 

 

 

30:^

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

10Y

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

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

M

Calculates the monthly payment.

A

<

<

<

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.

Time Value of Money 31

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HP 30b Professional, 20b Consultant Financial manual 10Y, Creating an Amortization Schedule
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30b Professional, 20b Consultant Financial specifications

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