HP 49g+ User Manual Page 208

Graphing calculator.

The screen now shows the value of PMT as –39,132.30, i.e., the borrower
must pay the lender US \$ 39,132.30 at the end of each month for the next
60 months to repay the entire amount. The reason why the value of PMT
turned out to be negative is because the calculator is looking at the money
amounts from the point of view of the borrower. The borrower has + US \$
2,000,000.00 at time period t = 0, then he starts paying, i.e., adding -US \$
39132.30 at times t = 1, 2, ..., 60. At t = 60, the net value in the hands of
the borrower is zero. Now, if you take the value US \$ 39,132.30 and
multiply it by the 60 payments, the total paid back by the borrower is US \$
2,347,937.79. Thus, the lender makes a net profit of \$ 347,937.79 in the 5
years that his money is used to finance the borrower's project.
Example 2 – Calculating amortization of a loan
The same solution to the problem in Example 1 can be found by pressing
@) @ AMOR!!, which is stands for AMORTIZATION. This option is used to calculate
how much of the loan has been amortized at the end of a certain number of
payments. Suppose that we use 24 periods in the first line of the
amortization screen, i.e., 24 @@OK@@. Then, press @@AMOR@@. You will get the
following result:
This screen is interpreted as indicating that after 24 months of paying back
the debt, the borrower has paid up US \$ 723,211.43 into the principal
amount borrowed, and US \$ 215,963.68 of interest. The borrower still has
to pay a balance of US \$1,276,788.57 in the next 36 months.
Check what happens if you replace 60 in the Payments: entry in the
amortization screen, then press @@OK@@ @@AMOR@@. The screen now looks like this:
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