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