HP HP10BII - HP 10 BII Annuity Due Future Value Calculation

AMORTISATION
ColinCSmith2010
8
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14.3 Amortisingthepaymentsusingafinancialcalculatortocalculatetheamountofcapitalandinterestpaidand
thebalanceattheendofeachyear
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Thisstepfollowsdirectlyonyourcalculationoftheinstalmentabove.
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Weenterthefirstfinancialperiodandthe
numberofpaymentsmade
inthatperiod
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Note:Youcansettheamortisationfunctionfor
anyperiodbuthereitisfora12‐monthperiod.
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Thisisforperiods1‐12
cCapitalpaidinyear1
dInterestpaidinyear1
eBalanceattheendofyear1
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HP10BIIfinancialcalculator 
KEYS DISPLAY 
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1INPUT12 12_
AMORT 1‐12
=‐47,543.02
c
= ‐8,385.86
d
= 52,456.98
e
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Forthenext12months(periods13–24)
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fCapitalpaidinyear2
gInterestpaidinyear2
hBalanceattheendofyear2
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HP10BIIfinancialcalculator 

AMORT 13‐24

=‐52,457.00
f
= ‐3,471.88
f
=‐0.02
h
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YOUCANCHECKTHESENUMBERSAGAINSTTHEAMORTISATIONSCHEDULEinsection14.2thatwascompletedusing
MicrosoftExcel.
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15.1 Calculatingtheintalment/payment(PMT)forafinancialtransaction–OrdinaryAnnuitywithamortisation
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AcompanytakesaloanofR100,000loanrepayable
inequalmonthinstalments,at
theend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notdisplayBEGIN
CALL 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
‐4,707.35
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