Amortization; Interest Conversion - Casio fx-CP400 User Manual

In this formula, = 0, and the value of
minute fractional values tend to accumulate during the subsequent calculations performed automatically by
the ClassPad, so
approaches to zero.
{
0 .................................. (
=
–
Σ
=
+
(1
= 0

Amortization

1 payment
1 ............
Number of payments
: interest portion of payment PM1 (INT)
: principal portion of payment PM1 (PRN)
: principal balance upon completion of
payment PM2 (BAL)
: total principal paid from payment PM1 to
payment PM2 (ΣPRN)
: total interest paid from payment PM1 to
payment PM2 (ΣINT)
Converting between the Nominal Interest Rate and Effective Interest Rate
The nominal interest rate ( % value input by user) is converted to an effective interest rate ( %
loans where the number of annual payments is different from the number of annual compound calculation
periods.
{
' = (1 +
100 × [ / ]
The following calculation is performed after conversion from the nominal interest rate to the effective interest
rate, and the result is used for all subsequent calculations.
' ÷ 100
=

Interest Conversion

100
1 +
=
never actually reaches exactly zero.
t 0)
0
... (Other than those above)
–
+1
: smallest positive integer that satisfies the conditions
s 0, 0 s
)
PM1 ................... PM2 ..........
[ / ]
}
[ / ]
× 100
) – 1
– 1 × 100
is equivalent to × 100. It should be noted, however, that
becomes more accurate the closer that
, or 0
+1
1 payment
Last
= I
PM1 PM1–1
= +
PM1
=
PM2 PM2–1
Σ
PM2
= +
PM1
PM1
+ = one repayment (PMT)
Σ
PM2
=
PM1
PM1
(when "Payment Date" is "End")
0
0
,
1 1
1
– 1 × × 100
= 1 +
100
1 ............. PM1 ................
Number of payments
× I × (
VLJQ)
×
PM1–1
+
PM2
+ ... +
PM1+1 PM2
+ + ... +
PM1+1 PM2
(when "Payment Date" is "Begin")
Chapter 11 Financial Application
PM2 ............. Last
'
) for installment
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