HP 20b HP 20b Business Consultant Financial Calculator Manual - Page 34

Creating an Amortization Schedule, Table 3-4

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Time Value of Money A < > Enter the values for the TVM keys for the example below. Press followed by or to view the amortization schedule. 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 shown with RPN as the active operating mode. Table 3-4 Amortization Example Keys Display Description 12: [ Inputs 12 as the number of payments per year. 30: ^ Inputs 360 (30 times 12 payments per year) as the number of payments for the 30-year loan. 10Y Inputs 10 as the interest rate percentage per year. 1400 00V 0F Inputs the value of the loan at the time of the first payment. Inputs 0 as the future value of the loan (zero balance). M Calculates the monthly payment. A < 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. Displays the amount of interest paid on the loan for the first year. The amount of your payments applied towards interest for the first year is about 14,000.00. Displays the first payment in the next period to amortize (the second year). Note that the calculator automatically updates Start to the next group of periods to amortize. 34

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Time Value of Money
34
Enter the values for the TVM keys for the example below. Press
A
followed by
<
or
>
to view the amortization
schedule.
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
shown with RPN as the active operating mode.
Table 3-4
Amortization Example
Keys
Display
Description
12:
[
Inputs
12 as
the number of payments per year.
30:
^
Inputs
360
(30 times 12 payments per year) as the number of
payments for the 30-year loan.
10Y
Inputs
10
as the interest rate percentage per year.
1400
00V
Inputs the value of the loan at the time of the first payment.
0F
Inputs
0
as the future value of the loan (zero balance).
M
Calculates the monthly payment.
A
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.
<
Displays the amount of interest paid on the loan for the first
year. The amount of your payments applied towards interest
for the first year is about 14,000.00.
<
Displays the first payment in the next period to amortize (the
second year). Note that the calculator automatically updates
Start
to the next group of periods to amortize.