Sharp EL-738F Operation Manual page 38

2
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
Set all the variables to
default values.
Make sure ordinary annuity is set (BGN is not displayed).
Set TVM solver vari-
ables and calculate
payment.
Answer: The monthly payment is $3,844.57.
Now generate an amortization schedule from the fi rst to the
48th payments.
Procedure
Change to amortization
calculation and enter 1
for the starting payment.
Enter 48 (December)
for the ending payment.
Display the balance af-
ter 48 months. (balloon
payment)
Display the principal
paid over 48 months.
Display the interest
paid over 48 months.
Answer: The balloon payment after the 48th period would be
$482,755.24.
Calculating payments, interest, and loan bal-
ance after a specifi ed payment
s . b
. w 12 Q
s 30 . <
N 500000
t 8.5 f @
u
* 1 Q
i 48 Q
i
i
i
Key operation
Key operation
36
Display
0
PMT=
-384457
Display
AMRT P1=
AMRT P2=
BALANCE=
48275524
ÍPRINCIPAL=
-1724476
ÍINTEREST=
-16729460
000
100
4800