U
SER’S GUIDE — 35
Amortization and Remaining Balance
The amortization function is quick and simple. It allows you to find
total interest, principal, and remaining balance for an entire loan, for
an individual payment or individual year, or any range of payments
or range of years, for fully or partially amortized loans. It also lets
you quickly compute the mortgage interest deduction (as an esti-
mate) for your clients.
Notes on Amortization
1. When you enter a range of payments using the Colon : key,
you can find all three possible outputs — Interest, Principal, and
Remaining Balance — without having to re-enter the range each
time. Simply keep pressing the a key to find the values.
2. You can also find Remaining Balance using the s a key by
specifying a year or range of years, period or range of periods.
For example, to find the remaining balance after the 10th year,
press 1 0 s a; to find the remaining balance after the
10th period, press 1 0 s b (Periodic) s a.
3. Entered ranges are inclusive, so that a range of 1 to 5 would
include both year 1 and year 5.
4. Entering a numerical value or performing a math operation on
the keypad will alter the values (including the default settings) for
range of payments calculations. It is, therefore, best to specify a
range of payments or an individual payment before you calculate
any of the above.
5. In some cases, it is the practice to include a final, regular P&I
payment with the “balloon payment.” This calculator will not
include that in the internal calculation of remaining balance; it
will only display the actual principal balance remaining.
(Cont’d)
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