Now scroll up to select [PMT] and solve it.
The monthly repayment amount is $629.81. Next, find the outstanding principal after
2 years.
Enter AMRT mode and scroll down to enter 1 for [PM1] and 24 for [PM2]. Then,
scroll to select [BAL:Solve] and solve it.
The new loan duration will be calculated using this new outstanding balance where
the monthly payment remains at $629.81 but the interest rate is now at %10
12
=j .
To find the changed loan duration we return to CMPD mode, enter the new
outstanding balance as PV and enter 10 for [I%]. Note that the new outstanding
balance is now stored in the Answer Memory.
Once these values are entered, scroll up to select [n] and solve it.
Thus there are 265 more payment of $629.81 plus a final smaller payment. In other
words the new loan duration is 266 months, or total is 24 + 266 = 290 months.
Finally, we find the future value of the repayment with loan duration of 266 months;
the difference between this future value and monthly payment is the final payment.
While in CMPD mode, enter 266 for [n], and scroll down to select [FV] and solve it.
Now calculate PMT + FV (FV is negative) at COMP mode.
Therefore the final, smaller payment is $538.92. █
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