Sharp EL738C EL-738 Operation Manual - Page 26

Calculating basic loan payments

Get Sharp EL738C - ELECTRONICS EL-738C Financial Calculator PDF manuals and user guides
UPC - 074000018518
View all Sharp EL738C manuals
Add to My Manuals
Save this manual to your list of manuals

Page 26 highlights

2 Calculating basic loan payments Calculate the quarterly payment for a $56,000 mortgage loan at 6.5% compounded quarterly during its 20-year amortization period. PV = $56,000 I/Y = 6.5% FV = 0 ...... PMT = ? N = 4 × 20 years = 80 Procedure Set all the variables to default values. Key operation . b Display 000 Make sure ordinary annuity is set (BGN is not displayed). Set the number of payments per year to 4. . w 4 Q Confirm the number of i compounding periods per year. Quit the P/Y and C/Y set- s tings. Calculate the total 20 . < N number of payments and store in N. Enter the present value. 56000 v Enter the future value. 0 T Enter the annual interest 6.5 f rate. Calculate the quarterly payment. @ u P/Y= 400 C/Y= 400 000 ANS~N 8000 56---~PV 5600000 -~FV 000 6.5~I/Y 650 PMT= -125586 Answer: The quarterly payments are $1,255.86. 25

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
25
Calculating basic loan payments
Calculate the quarterly payment for a $56,000 mortgage loan
at 6.5% compounded quarterly during its 20-year amortization
period.
I/Y = 6.5%
N = 4
×
20 years = 80
......
PV = $56,000
FV = 0
PMT = ?
Procedure
Key operation
Display
Set all the variables to
default values.
.
b
000
Make sure ordinary annuity is set (
BGN
is not displayed).
Set the number of pay-
ments per year to 4.
.
w
4
Q
P/Y=
400
Confirm the number of
compounding periods per
year.
i
C/Y=
400
Quit the P/Y and C/Y set-
tings.
s
000
Calculate the total
number of payments and
store in N.
20
.
<
N
ANS~N
8000
Enter the present value.
56000
v
56———~PV
5600000
Enter the future value.
0
T
—~FV
000
Enter the annual interest
rate.
6.5
f
6.5~I/Y
650
Calculate the quarterly
payment.
@
u
PMT=
-125586
Answer:
The quarterly payments are $1,255.86.
2