Time Value of Money
47
Table 4-5 Amortization Menu Items
Menu Item/Key Description
Nb Per=
Number of periods to group together in the amortization
calculation. The default value is the number of
payments per year defined by the [ key.
Start=
Period on which to start amortization. Default is
1
. If
you want to amortize for the 2
nd
year, enter
13
(the
second year starts at the 13
th
payment).
Balance=
The loan balance at the end of the assigned amortized
period.
Principle=
Amount of the loan payment applied to the principle at
the end of the amortized period.
Interest=
Amount of the loan payment applied to the interest at
the end of the amortized period.
Enter the values for the TVM keys from the example below. Press A followed
by > or < to view the amortization schedule.
You borrow $140,000.00 for 360 months at 10% interest from a credit union.
Create an amortization schedule for the loan. How much interest did you pay
for the first year? What is the balance of your loan after the first year? See
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