3.Press the soft menu key to amortize the new batch of payments. Repeat steps 1 through 3 as often as needed.

Example 4 - Amortization for home mortgage

For the results of Example 3, show the amortization of the next 10 years of the mortgage loan. First, press the soft menu key. Then, keeping 120 in the PAYMENTS

field, press the soft menu key to produce the results shown below.

To amortize a series of future payments starting at payment p:

1.Calculate the balance of the loan at payment p-1.

2.Store the new balance in PV using the soft menu key.

3.Amortize the series of payments starting at the new PV.

The amortization operation reads the values from the TVM variables, rounds the numbers it gets from PV and PMT to the current display mode, then calculates the amortization rounded to the same setting. The original variables are not changed, except for PV, which is updated after each amortization.

12-8

Using the Finance Solver