|
|
|
Applications continue
|
|
|
|
The information is entered as follows:
|
|
 1 |
Enter the payment number (less 1) associated with the beginning of the time frame, press STO.
|
| |
| 2 |
Enter the payment number associated with the end of the time frame, press n.
|
| |
| 3 |
Enter total number of payments over the life of the loan, press n.
|
| |
| 4 |
Enter the interest rate per payment (annual interest rate divided by the number of periods in a year), press i.
|
| |
| 5 |
Enter amount of each periodic payment (principal plus interest), press PMT.
|
| |
| 6 |
Press Σ+ to obtain the sum of the interest paid over the period.
|
| |
| 7 |
Press x y to obtain the amount of principal you still owe (we’d recommend sitting down for this one!).
|
|
|
|
Note
that the first three steps are for entering different period numbers.
The entry sequence is easily remembered; just enter each value in
ascending order.
|
|
|
Sample Case: You have a 30-year, 8% mortgage on your house in the
amount of $40,885 which you obtained 1 year ago. Monthly payments are
$300. What is the amount of interest paid during the taxable year just
ended starting at payment 1 and ending at payment 12? What is the unpaid
principal?
|
|
|
Solution
|
| | Enter: | | | See Displayed: | | |
|
| |
0 STO 12 n 360 n
|
|
| |
| 8 SAVE 12 ÷ i 300 PMT Σ+ | | | | $ |
| |
|
interest paid during applicable period
|
|
| |
| |
|
remaining principal
|
|
|
Rebates on Consumer Loans (Rule of 78’s)
|
|
This calculation finds the unearned interest, as well as the balance due
on the principal, for a prepaid consumer loan using the rule of 78’s.
|
|
|
The
known values are the current installment number, the total number of
installments for which the loan was written, and the total finance
charge (amount of interest). The formula uses the constant storage location, therefore, any value stored there will be destroyed when the final key (the one that triggers the result) is pressed. The information is entered as follows:
|
|
