HP Prime Graphing NW280AAABA manual Calculating amortizations, To calculate amortizations

Calculating amortizations

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

To calculate amortizations:

1.Start the Finance app.

2.Specify the number of payments per year (P/YR).

3.Specify whether payments are made at the beginning or end of periods.

4.Enter values for I%YR, PV, PMT, and FV.

5.Enter the number of payments per amortization period in the Group Size field. By default, the group size is 12 to reflect annual amortization.

6.Tap . The calculator displays an amortization table. For each amortization period, the table shows the amounts applied to interest and principal, as well as the remaining balance of the loan.

Example:Using the data from the previous example of a home Amortization for a mortgage with balloon payment (see page 291), calculate

home mortgage how much has been applied to the principal, how much has been paid in interest, and the balance remaining after the first 10 years (that is, after 12 × 10 = 120 payments).

1.Make your data match that shown in the figure to the right.

Finance app 293