Creating An Amortization Schedule - HP 30b - Business Professional Calculator User Manual

Creating an Amortization Schedule

You borrow 140,000.00 for 360 months at 10% interest. Create an amortization schedule for
the loan. How much interest did you pay for the first year? What is the balance of your loan
after the first year? See Table 3-4. The example below is calculated with Chain set as the
operating mode, but it can be performed in RPN, Chain, or Algebraic.
Table 3-4 Amortization Example
Keys
12:[
30:^
10Y
1400
00V
0F
M
A
<
<
<
Display Description
Inputs 12 as the number of payments per year.
This value is 12 by default, but it maintains its
current entered value when TVM Reset is used.
Inputs 360 (30 times 12 payments per year) as the
number of payments for the 30-year loan.
Inputs 10 as the interest rate percentage per year.
Inputs the value of the loan at the time of the first
payment.
Inputs 0 as the future value of the loan (zero
balance).
Calculates the monthly payment.
Displays the number of periods to group together
in the amortization schedule. Default is the current
value of P/YR.
Displays the first period of the group of periods to
amortize.
Displays the current balance remaining after the
first year.
Displays the current amount of the principal
applied towards the loan for the first year.
Time Value of Money
31