HP HP-18C - Page 66

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 at the end of four years?
Figure 4·6. A Home Mortgage With a Balloon Payment After
Four Years
PV = 75,250
PMT= ?
I%YR = 13.8
N= 4 x 12
#P/Y = 12
The problem is done in two steps:
1. Calculate the monthly payment.
48
balloon FV= ?
2. Calculate the balloon payment after 4 years.
Starting from the MAIN menu:
Keys:
... --
., CLEAR ALL I
Display:
121.121121
64 4: Time Value of Money
Description:
Displays the TVM menu .
Clears
the history stack
and the TVM variables.