Texas Instruments BA II Plus User Manual page 10

The balance of the mortgage loan after five years is calculated using the following operations,
after having computed the monthly payment of $605.36:
Sequence of entries
Do not change the data already entered for the financial variables
5 > 2ND > xP/Y > N
CPT > FV
The balance of the mortgage loan after five years is therefore $72,076.74.
In financial mathematics, it is often a good idea to double-check calculations. In this example,
another way to calculate the mortgage balance after 5 years would be to calculate the
present value of monthly payments of $605.36 over 15 years, i.e., the remaining term of the
loan.
The balance of the mortgage loan after five years can be calculated using the following
operations:
Sequence of entries
CE/C > 2ND > CLR TVM
2ND > P/Y > 12 >
ENTER
> 2 > ENTER
CE/C > CE/C
15 > 2ND > xP/Y > N
6 > I/Y
605.3601756 > PMT
CPT > PV
The balance of the mortgage loan after five years is therefore $72,076.74.
Display
N = 60 Enters the number of monthly
payments over a five-year period.
FV = 72,076,74454 Calculates the loan balance after 60
monthly payments.
Display
0
P/Y = 12
C/Y = 2
0
N = 180
I/Y = 6
PMT = 605.3601756
PV = −72,076.74454
Explanation
Explanation
Resets the default values.
Enters a monthly payment period.
Enters a semi-annual interest-
calculation period.
Exits the entry of the C/Y variable.
Enters the number of monthly
payments for the 15 remaining
years.
Enters the nominal interest rate.
Enters the amount of the monthly
payments.
Calculates the loan balance after 60
monthly payments.
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