HP 39g+ Graphing manual Calculating Amortizations, To calculate amortizations

Calculating Amortizations

Amortization calculations, which also use the TVM variables, determine the amounts applied towards principal and interest in a payment or series of payments.

To calculate amortizations:

1.Start the Finance Solver as indicated at the beginning of this section.

2.Set the following TVM variables:

a Number of payments per year (P/YR) b Payment at beginning or end of periods

3.Store values for the TVM variables I%YR, PV, PMT, and FV, which define the payment schedule.

4.Press the soft menu key and enter the number of payments to amortize in this batch.

5.Press the soft menu key to amortize a batch of payments. The calculator will provide for you the amount applied to interest, to principal, and the remaining balance after this set of payments have been amortized.

Example 3 - Amortization for home mortgage

For the data of Example 2 above, find the amortization of the loan after the first 10 years (12x10 = 120 payments).

Pressing the soft menu key produces the screen to the left. Enter 120 in the PAYMENTS field, and

press the soft menu key to produce the results shown to the right.

To continue amortizing the loan:

1.Press the soft menu key to store the new balance after the previous amortization as PV.

2.Enter the number of payments to amortize in the new batch.

Using the Finance Solver 10-7