HP 17BIIPLUS - Page 9

hp calculators
HP 17bII+ Time-Value-Of-Money
factor of three years with these keystrokes:
3
SK
N
That replaces the 60 months in the ‘N’ register that we needed
to calculate the loan payment at the outset with the 36 months
we need now to figure out the loan balance. All that is left to
do is to ask what that balance will be three years into the
future. Press:
FV Answer: -10,905.09
The car owner has a balloon payment of $10,905.09 to make in
order to pay off this old loan. It is negative in your display
because it represents more money that must "flow" from the
borrower to the lender.
Clear with ‘SK’ and ‘CLR DATA.’
Last problem: All this time we have worked with monthly compounding.
Let’s go to a different payment schedule with a loan of
$80,000. at 6.75% annual interest, a loan term of 15 years and
payments made every two weeks. What payment should be
made biweekly so that this loan will be paid off by the
end of the loan term?
Analysis/solution: Let’s first set the new payments per year. From the TVM
menu press ‘OTHER.’ The new menu that comes up has
“P/YR” to the far left of the display. How many payments per
year will you make if you pay every two weeks? If we divide
52 weeks of the year by 2 weeks, we’ll find you will make 26
payments a year. Press in ‘26,’and then ‘P/YR.’ Do you see
it come up in the display? Good.
Now, press ‘EXIT’ to get back to the TVM menu and calculate
the loan payment with these keystrokes:
80000
PV
6.75
I%YR
15
SK
N
PMT Answer: -326.45
Your biweekly payment is $326.45. By the way, did you notice
that when you put in the 15 years that it really did multiply by
26 payments a year to give the “N=390” that you saw in the
display?
hp calculators - 9 - HP 17bII+ Time-Value-Of-Money