50 Section 3: Basic Financial Functions
Example 1: In Example 1 on page 48, we calculated that the payment amount on
a 29-year, $43,400 mortgage at 14Ľ% annual interest is $523.99. If the seller
requests a balloon payment at the end of 5 years, what would be the amount of
the balloon?
Example 2: If you deposit $50 a month (at the beginning of each month) into a
new account that pays 6Ľ% annual interest compounded monthly, how much
will you have in the account after 2 years?
Keystrokes Display
fCLEARG
5gA
60.00
Calculates and stores n.
14.25gC
1.19
Calculates and stores i.
43400$
43,400.00
Stores PV.
523.99ÞP
–523.99
Stores PMT (with minus sign for
cash paid out).
gÂ
–523.99
Sets payment mode to End.
M
–42,652.37
Amount of balloon payment.
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