Compound Interest; Amortization - HP 0012C-90001 User Manual

186 Appendix D: 186 Appendix D: Formulas Used Formulas Used
186 186 Appendix D: Appendix D: Formulas Used Formulas Used

Compound Interest

Compound Interest
Compound Interest Compound Interest
Without an odd period:
  
PV iS
0 1 ( )
With simple interest used for an odd period:
 
PV i
0 1 [ FRAC(

INTG

FV i
1 ( )
With compound interest used for an odd period:
FRAC(
 
PV i
0 1 ( )

INTG

FV i
1 ( )

Amortization

Amortization Amortization Amortization
n
= number of payment periods to be amortized.
INT
= amount of
j
PRN = amount of
j
PV
= present value (balance) of loan after payment in period
j
j
= period number.
INT
= {0 if
1
PV
|
0
PRN PMT
=
1
PV PV
=
1
0
INT PV
= |
j
PRN PMT
=
j
PV PV
=
j j
n
 

INT INT
j

j 1
n
 

PRN PRN

j 1

 
PV PV PRN
n
0

 n
 
i
1 1 ( )
 
PMT

i



1
 
n iS PMT
] ) 1 ( )



n
( )


1
n
)
 
iS PMT
1 ( )



n
( )
PMT
applied to interest in period
PMT applied to principal in period
n
= 0 and payment mode is set to Begin.
i PMT
× | (sign of )
RND
INT
–
1
PRN
+
1
i PMT
× | × (sign of
j – 1 RND
INT
–
j
PRN
+
–1 j
  
INT INT
...
1 2
  
PRN PRN
j
1 2

 n
 
FV i
1 ( )



 
INTG( n )
 
i
1 ( )


i


 n 
INTG( )

i
1 ( )


i


j
.
j
j
) for > 1.

INT
n

PRN
...
n
.
j
.