Sharp EL-738 operation manual 384457, 4800, 48275524, 1724476, 16729460

2 Calculating payments, interest, and loan bal- ance after a specified payment

You have taken out a 30-year loan for $500,000, with an annual interest rate of 8.5%. If, after the 48th period, you want a balloon payment due, what amount of monthly payment must you make with monthly compounding and how much will the balloon pay- ment be?

Procedure	Key operation	Display
Set all the variables to	s.b
default values.		000

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

Set TVM solver vari-	.w12 Q
ables and calculate	s30 .<
payment.	N500000 v0	PMT=
	T8.5 f@
	u	-384457

Answer: The monthly payment is $3,844.57.

Now generate an amortization schedule from the first to the 48th payments.

Procedure	Key operation			Display
Change to amortization	*1 Q			AMRT P1=
calculation and enter 1
				100
for the starting payment.
Enter 48 (December)	i	48	Q	AMRT P2=
for the ending payment.				4800
Display the balance af-	i			BALANCE=
ter 48 months. (balloon
				48275524
payment)
Display the principal	i			ÍPRINCIPAL=
paid over 48 months.				-1724476
Display the interest	i			ÍINTEREST=
paid over 48 months.				-16729460

Answer: The balloon payment after the 48th period would be $482,755.24.

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