5: Time Value of Money 69
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
Keys: Display: Description:
Display TVM menu.
@c
Clears history stack and
TVM variables.
@c
e
If needed: sets 12 payment
periods per year; End
mode.
30
@
Pressing
@
first multiplies
30 by 12, then stores this
number of payments in N.
11.5 Stores annual interest rate.
630
&
Stores a negative monthly
payment.
Calculates loan amount.
+
12000
=
Calculates total price of the
house (loan plus down
payment).
Example: A Mortgage with a Balloon Payment. You’ve taken out a
25-year, $75,250 mortgage at 13.8% annual interest. You anticipate
that you will own the house for four years and then sell it, repaying the
loan in a “balloon payment.” What will be the size of your balloon
payment?
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