Calculated Industries 3430 - Finding the Term of a Loan; Paying off a Mortgage Early (Making Larger Payments)

U
SER’S GUIDE — 29
Finding the Term of a Loan
How long does it take to pay off a loan of $15,000 at 10% interest if
you make payments of $200 each month?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 1 5 ) l 15,000.00
Enter annual Interest rate 1 0 ˆ 10.00
Enter monthly Payment 2 0 0 p 200.00
Find Term in years T “run” 9.85
Find periodic Term T 118.19
Paying Off a Mortgage Early (Making Larger Payments)
How long does it take to pay off a 30-year, fixed-rate mortgage of
$150,000 at 8.5% interest if you add an extra $200 to the mortgage
payment each month?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 1 5 0 ) l 150,000.00
Enter annual Interest rate 8 • 5 ˆ 8.50
Enter Term in years 3 0 T 30.00
Find monthly P&I Payment p “run” 1,153.37
Add additional payment
amount + 2 0 0 = 1,353.37
Enter as new P&I
Payment amount p 1,353.37
Find reduced loan Term T “run” 18.15