HP HP10BII Using

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

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

Note:Youcansettheamortisationfunctionfor
anyperiodbuthereitisfora12‐monthperiod.

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

HP10BIIfinancialcalculator 
KEYS DISPLAY 

1INPUT12 12_
AMORT 1‐12
=‐47,543.02
c
= ‐8,385.86
d
= 52,456.98
e





Forthenext12months(periods13–24)




fCapitalpaidinyear2
gInterestpaidinyear2
hBalanceattheendofyear2

HP10BIIfinancialcalculator 

AMORT 13‐24

=‐52,457.00
f
= ‐3,471.88
f
=‐0.02
h




YOUCANCHECKTHESENUMBERSAGAINSTTHEAMORTISATIONSCHEDULEinsection14.2thatwascompletedusing
MicrosoftExcel.



15.1 Calculatingtheintalment/payment(PMT)forafinancialtransaction–OrdinaryAnnuitywithamortisation

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
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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.





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





HP HP10BII Specifications

General

Brand	HP
Model	HP10BII
Category	Calculator
Language	English