Savings Calculations - HP 17bll+ User Manual

Step 2. Calculate the balloon payment after 4 years.
894.33
&


4 @


Savings Calculations

Example: A Savings Account. You deposit $2,000 into a savings
account that pays 7.2% annual interest, compounded annually. If you
make no other deposits into the account, how long will it take for the
account to grow to $3,000? Since this account has no regular payments
(PMT=0), the payment mode (End or Begin) is irrelevant.
_
2,000
*
The PMT stored in the previous step is the 12-digit number—894.330557971.
The calculation of the balloon payment must use the actual monthly payment
amount: the rounded number $894.33, an exact dollars-and-cents amount.




0
Stores rounded PMT value
for exact payment amount
(no fractional cents).
Figures and stores number
of payments in 4 years.
Calculates balloon payment
after four years. This
amount plus last monthly
payment repays the loan.
7.2
1
5: Time Value of Money
*
3,000
71