HP 10bII - Page 58

58 5: Time Value of Money Calculations
Example: A Mortgage With a Balloon Payment. <RX·YHREWDLQHGD
\HDUPRUWJDJHDWDQQXDOLQWHUHVW<RXDQWLFLSDWHWKDW
\RXZLOORZQWKHKRXVHIRUIRXU\HDUVDQGWKHQVHOOLWUHSD\LQJWKHORDQ
ZLWKDEDOORRQSD\PHQW:KDWZLOO\RXUEDOORRQSD\PHQWEH"
6ROYHWKLVSUREOHPXVLQJWZRVWHSV
 &DOFXODWHWKHORDQSD\PHQWXVLQJD\HDUWHUP
 &DOFXODWHWKHUHPDLQLQJEDODQFHDIWHU\HDUV
Step 1. )LUVWFDOFXODWHWKHORDQSD\PHQWXVLQJD\HDUWHUP
6HWWR(QGPRGH3UHVV
*O LIBEGINDQQXQFLDWRULVGLVSOD\HG
Keys: Display: Description:
*b
12.00
6HWVSHULRGVSHU\HDU
*U
300.00
6WRUHVOHQJWKRI
PRUWJDJHï 
PRQWKV
/
0.00
6WRUHVORDQEDODQFH
DIWHU\HDUV

172,500.00
6WRUHVRULJLQDOORDQ
EDODQFH
.
8.80
6WRUHVDQQXDOLQWHUHVW
UDWH
2
–1,424.06
&DOFXODWHVPRQWKO\
SD\PHQW
12
I/YR = 8.8%
N=25 × 12
P/YR=12
PV = 172,500
PMT=?
End Mode
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ook Page 58 Wednesday, June 21, 2000 5:19 PM