Skipped Payments - HP 12c Platinum Reference Manual

38 Lending

Skipped Payments

Sometimes a loan (or lease) may be negotiated in which a specific set of monthly
payments are going to be skipped each year. Seasonally is usually the reason for such an
agreement. For example, because of heavy rainfall, a bulldozer cannot be operated in
Oregon during December, January, and February, and the lessee wishes to make payments
only when his machinery is being used. He will make nine payments per year, but the
interest will continue to accumulate over the months in which a payment is not made.
To find the monthly payment amount necessary to amortize the loan in the specified
amount of time, information is entered as follows:
1. Press g and press fCLEARG.
2. Key in the number of the last payment period before payments close the first time
and press n.
3. Key in the annual interest rate as a percentage and press gC1PM.
RPN Mode:
4. Press Þ$12:n-n0PM?0:n.
5. Key in the number of payments which are skipped and press -
n1P0$M?+0.
6.
Press 0P12n100$M:$+ÞfCLEARG¼
7.
Key in the total number of years in the loan and press n.
8.
Key in the loan amount and press $P:0z to obtain the monthly payment
amount when the payment is made at the end of the month.
9. Press ÞM0P1n.
10. Key in the annual interest rate as a percent and press gC$ to find the
monthly payment amount when the payment is made at the beginning of the month.
ALG Mode:
4. Press Þ$12-:nn0PM?0:n-.
5. Key in the number of payments which are skipped and press
n1P0$M?+0.
6. Press 0P12n100$M+:$³ÞfCLEARG¼
7.
Key in the total number of years in the loan and press n.
8.
Key in the loan amount and press $Pz:0³ to obtain the monthly
payment amount when the payment is made at the end of the month.
9. Press ÞM0P1n.
10. Key in the annual interest rate as a percent and press gC$$ to find the
monthly payment amount when the payment is made at the beginning of the month.