400, 8000, 125586, Calculating basic loan payments

2 Calculating basic loan payments

Calculate the quarterly payment for a $56,000 mortgage loan at 6.5% compounded quarterly during its 20-year amortization period.

PV = $56,000

I/Y = 6.5%

FV = 0

. . . . . .

PMT = ?

N = 4 ⋅ 20 years = 80

Procedure	Key operation	Display

Set all the variables to	.b	000
default values.		000

Make sure ordinary annuity is set (BGN is not displayed).

Set the number of pay-	.w4 Q	P/Y=
ments per year to 4.		400

Conﬁrm the number of	i	C/Y=
compounding periods per		C/Y=
compounding periods per		400
year.		400

Quit the P/Y and C/Y set-	s	000
tings.		000

Calculate the total	20 .<N	ANS~N
number of payments and		8000
store in N.		8000
store in N.

Enter the present value.	56000 v	56———~PV
		5600000
Enter the future value.	0 T	—~FV
		—~FV
		000

Enter the annual interest	6.5 f	6.5~I/Y 650
rate.		6.5~I/Y 650
Calculate the quarterly	@u	PMT=
payment.		-125586
payment.

Answer: The quarterly payments are $1,255.86.

Page 26

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Sharp EL-738 operation manual 400, 8000, 125586, Calculating basic loan payments

Contents

EL-738 Page Contents Introduction Operational Notes Keys Using the .andKey Notations in This Manual Preparing to Use the Calculator Resetting the Calculator In Case of DifﬁcultyResetting the calculator Key operation keys Calculator and Display LayoutCalculator layout Display layout 2ndF SET UP Menu Selecting the display notation and number of decimal places 000 33333330003 Selecting the angular unit see Operating Modes Selecting a modeOperations available in each mode Selecting the date format see 9000 14000343 Basic Calculations ⋅ ⋅ Delete key Cursor keys Editing and Correcting an EntryMemory clear key Playback function 500 ErrorsMemory use in each mode for memory calculations 192 Last answer memory ANS Temporary memories A-H, X-ZIndependent memory M TVM variables Example Key operation Statistical variablesMemory calculations General Information Financial calculations Variables used in ﬁnancial calculations Variables shared among calculations Listed ﬁnancial variables Basic variable operationsTVM variables N, I/Y, PV, PMT, FV ENT and Comp symbols Category Display symbols Descriptions Cash ﬂow diagrams Compound interest TVM Time Value of Money Solver Setting the payment period payment dueVariable Corresponding Description Default Variable key Variables used in the TVM solver Basic examples for the TVM solver Calculating basic loan interest 5600000 120024000 44000 125586 4008000 Calculating basic loan payments FV= 360020000 Calculating future value 1000000 1002000 376889 Annuity due BGN Specifying payments dueOrdinary annuity END Ordinary annuity 360 180030000000 1624570 14500 240029950 299500 627995 3400150000 Calculating down payment and amount to borrow 550 3000090000 14655892 Variables used in amortization Variable Description Default valueAmortization Calculations 61656 8895148 600 104852203428 1700 48275524 3844574800 1724476 Single cash ﬂows Discounted Cash Flow AnalysisEntering cash ﬂow data Repeated cash ﬂows 300 000*2200 Conﬁrming and editing data Deleting data 2500000Editing data Inserting data Variables used in discounted cash ﬂow analysis 3000000600000 NPV and IRR To obtain NPV Procedure Key operation Display Bring up the initial disPlay in Normal mode To obtain IRR 2314 Calculating the present value of variable cash ﬂows 662752 Variables used in bond calculations Setting the day-count methodBond Calculations To obtain bond price Price PV To obtain yield to maturity Yield I/Y 15-2023 65010000 720 Entering dates 9250728 Variables used in depreciation calculations Setting the depreciation methodDepreciation Calculations Key operation DescriptionPage Calculating straight-line depreciation 30005000000 To change APR to EFF 1956Conversion between APR and EFF To change EFF to APR Day and Date Calculations Variables used in day and date calculations Calculating number of days 10-200922800 Answer 228 days Calculate Procedure Key operation Display Move to the last datePercent Change/Compound Interest Cal- culations 5467 750000011600000 800000 Cost/Sell/Margin/Markup Calculations 980000113 Variables used in cost/sell/margin/markup calcula- tions 88842 455609500 Determining selling price Calculating the breakeven point Breakeven CalculationsVariables used in breakeven calculations 12000 15000007580 33937 Constant Calculations Chain Calculations 5000 087071 4500 Random dice Random FunctionsRandom numbers Random coin Random integer 532Modify Function For a two-variable data set x value y value J Entering statistical dataFor a single-variable data set Key operation Sub-mode Display Entering statistical data 1000 2000 Linear regression calculations Statistical Calculations and VariablesSingle-variable statistical calculations Quadratic regression calculation Variables Content Single-variable statistical calculation 5300017857 Linear regression calculation Quadratic regression calculation Amortization calculations Financial Calculation FormulasTVM solver Discounted cash ﬂow analysis Bond calculations Day and date calculations Depreciation calculationsConversion between APR and EFF Breakeven calculations Statistical Calcula- tion FormulasCost/Sell/Margin/Markup calculations Syntax error Error Errors and Calculation RangesError codes and error types Calculation error Error Display error Error Equation too long ErrorNo solution Error Input value error Error Calculation ranges of functions Function Calculation range Integer Battery Replacement When to replace the battery Priority Levels in Calculations Replacement procedureAutomatic power-off function Key operation and calculation priority SpeciﬁcationsFor more information about business/ ﬁnancial calculators Index Formulas, 72-75 FV, 18, 22, 72 GRAD, 8, 9, 61 Memo

2 Calculating basic loan payments

000

default values.

400

000

8000

5600000

000

-125586