Education Technology

# Knowledge Base

## Solution 11196: Calculating Amortization on the BA-35 Solar.

### How do I calculate amortization on the BA-35 Solar?

The example below will demonstrate how to calculate an amortization schedule using the BA-35 Solar. The amortization keys include [I/P], [BAL], and [P1/P2].

Example: What is the monthly payment of a mortgage for $75,000 at 8.5% interest for 30 years (360 payments)? PV = 75000 %i = 8.5 N = 30 PMT = ? Compute as follows: • Press the [2nd] key and the [CE/C] key. (This clears the Memory Register of the calculator.) • Input 75000 and press the [PV] key. (This stores 75000 to the Present Value register.) • Input 8.5 and press the [2nd] key and the [%i] key. (This divides the 8.5% interest rate by 12.) Press the [%i] key again to store the new value to the %i register. • Input 30 and press the [2nd] key and the [N] key. (This multiplies the 30 years by 12 which equals 360 payments.) Press the [N] key again to store the new value to the N register. • Input 0 and press the [FV] key. (Since Future Value is an unused variable, it is a good idea to store zero to that memory slot). • Press the [CPT] key and the [PMT] key. The calculated monthly payment is$576.69.

Using the information above, calculate the remaining balance, interest and principle paid after 1 payment.

• Input [1], and press the [BAL] key.
The balance after 1 payment is $74,954.56 • Input [1], and press the [I/P] key. Interest paid is$531.25

• Press the [x<>y] key.
Principle paid is \$45.44