Example 1
You finance the purchase of a house with a
30-year loan at 6.5% annual interest. The cost
of the house is $180,000 and you make a
down payment of $30,000. Thus a net
$150,000 is financed. How much is the
required monthly payment? Assume
payments start at the end of the first period.
You enter the data as shown in the first figure
at the right.
Solution
Highlight the PMT field (as it is the payment
value we want to calculate). Tap
will need to make monthly payments of $948.10. (Negative values indicate payments you make, while positive values
indicate payments made to you.)
Example 2
To continue the previous example, suppose
you expect to sell the house after 10 years,
repaying the balance of the loan with a balloon
payment. What will be the amount of the
balloon payment?
To solve this problem you need to display the
amortization schedule for the loan. Tap
. The amortization schedule appears
as a table, with columns for payment group
(P), the principal paid during the group, the
interest paid during the group, and the
balance remaining at the end of the group. The
menu items are as follows:
•
—Displays a menu where you can choose a font size: small, medium, or large
•
—Returns to the TVM page
Solution
To find the balloon payment due after 10 years of payments, scroll down the P column
until you come to the row where P = 10. There you will see that you will have repaid
$22,835.81 in principal, as well as paying $90,936.43 in interest. The fourth column
shows that a balance of $127,164.19 is due after 10 years. That is the size of the
required balloon payment.
Press P to see a graphical representation of the amortization table. Press > to step
though each payment group and see, at the bottom of the screen, the principal and
interest paid in each group.
Quick Start Guide
Example 1
. The payment value is calculated. As shown in the second figure at the right, you
Example 2
Solution
Solution
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