HP HP10BII Using

AMORTISATION
ColinCSmith2010
7
*seegettingstarted
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N.B. ENSURETHATYOUCORRECTLYIDENTIFYYOURPAYMENTSASANORDINARYANNUITYORANANNUITYDUE
ANDSETYOURCALCULATORACCORDINGLY.
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14.1 Calculatingtheintalment/payment(PMT)foranormalfinancialtransaction‐AnnuityDuewithamortisation
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AcompanytakesaloanofR100,000loanrepayable
inequalmonthinstalments,atthebeginningofthe
month,overaperiodoftwoyearsterm,aninterest
rateof12%peryearisquotedbythebank(thisis
thenominalorAnnualPercentageRateAPR.
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Thisisyourmonthlyinstalment.
 
HP10BIIfinancialcalculator
KEYS DISPLAY

*MustdisplayBEGIN
CALL 0.00
BEG/END
BEGIN0.00
1 P/YR 1.00
100,000PV
100,0000.00
0FV
0.00
12÷12I/YR 1.00
2x12N 24.00
PMT
‐4,660.74
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14.2 THEAMORTISATIONSCHEDULE–ANNUITYDUE
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Wecouldderivetheinterestpaymentsbypreparingamanualamortisationschedule(verytimeconsuming)oronebelow
usingMicrosoftExcel(notallowedinexaminations).
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‡Inanannuityduetheentirefirstpaymentisappliedtocapital
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Month Instalment Interest Capitalpaidoff CapitalBalance
today  100,000.00
1 R4,660.74 ‐ ‡4,660.74 95,339.26
2 R4,660.74 953.39 3,707.35 91,631.91
3 R4,660.74 916.32 3,744.42 87,887.49
4 R4,660.74 878.87 3,781.87 84,105.63
5 R4,660.74 841.06 3,819.68 80,285.94
6 R4,660.74 802.86 3,857.88 76,428.06
7 R4,660.74 764.28 3,896.46 72,531.60
8 R4,660.74 725.32 3,935.42 68,596.18
9 R4,660.74 685.96 3,974.78 64,621.40
10 R4,660.74 646.21 4,014.53 60,606.87
11 R4,660.74 606.07 4,054.67 56,552.20
12 R4,660.74 565.52 4,095.22 52,456.99
13 R4,660.74 524.57 4,136.17 48,320.82
14 R4,660.74 483.21 4,177.53 44,143.28
15 R4,660.74 441.43 4,219.31 39,923.98
16 R4,660.74 399.24 4,261.50 35,662.48
17 R4,660.74 356.62 4,304.12 31,358.36
18 R4,660.74 313.58 4,347.16 27,011.20
19 R4,660.74 270.11 4,390.63 22,620.58
20 R4,660.74 226.21 4,434.53 18,186.04
21 R4,660.74 181.86 4,478.88 13,707.16
22 R4,660.74 137.07 4,523.67 9,183.49
23 R4,660.74 91.83 4,568.91 4,614.59
24 R4,660.74 46.15 4,614.59‐0.00
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Year1 interest
R8,385.86
Year1 capital
R47,543.02
Year2 interest
R3,471.88
Year2 capital
R52,457.00

HP HP10BII Specifications

General

Brand	HP
Model	HP10BII
Category	Calculator
Language	English