Sharp EL-738XTBN

36
Calculating payments, interest, and loan bal-
ance after a specifi ed payment
You have taken out a 30-year loan for $500,000, with an annual
interest rate of 8.5%. If, after the 48th period, you want a balloon
payment due, what amount of monthly payment must you make
with monthly compounding and how much will the balloon pay-
ment be?
Procedure Key operation Display
Set all the variables to
default values.
s .
b
000
Make sure ordinary annuity is set (BGN is not displayed).
Set TVM solver vari-
ables and calculate
payment.
. w
12
Q
s
30
.
<
N
500000
0
t
8.5
f @
u
PMT=
-384457
Answer: The monthly payment is $3,844.57.
Now generate an amortization schedule from the fi rst to the
48th payments.
Procedure Key operation Display
Change to amortization
calculation and enter 1
for the starting payment.
*
1
Q
AMRT P1=
100
Enter 48 (December)
for the ending payment.
i
48
Q
AMRT P2=
4800
Display the balance af-
ter 48 months. (balloon
payment)
i
BALANCE=
48275524
Display the principal
paid over 48 months.
i
ÍPRINCIPAL=
-1724476
Display the interest
paid over 48 months.
i
ÍINTEREST=
-16729460
Answer: The balloon payment after the 48th period would be
$482,755.24.
2