Example: Computing Payments and Generating an Amortization Schedule
This example shows you how to use the TVM and Amortization worksheets to calculate the monthly payments on a 30-year loan and generate an amortization schedule for the first three years of the loan.
Computing Mortgage Payments
Calculate the monthly payment with a loan amount of $120,000 and 6.125% APR.
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To |
Press |
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Display |
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Set all variables to defaults |
& } ! |
RST |
0.00 |
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Set payments per year to 12 |
& [ 12 ! |
P/Y= |
12.001 |
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Return to standard-calculator mode |
& U |
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0.00 |
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Enter number of payments using payment multiplier |
30 & Z , |
N= |
360.001 |
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Enter interest rate |
6.125 - |
I/Y= |
6.131 |
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Enter loan amount |
120000 . |
PV= |
120,000.001 |
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Compute payment |
C / |
PMT= |
-729.13* |
Answer: The computed monthly payment, or outflow, is $729.13.
Generating an Amortization Schedule
Generate an amortization schedule for the first three years of the loan. If the first payment is in April, the first year has nine payment periods. (Following years have 12 payment periods each.)
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To |
Press |
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Display |
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Select the Amortization worksheet |
& \ |
P1= |
current value |
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Set beginning period to 1 |
1 ! |
P1= |
1.00 |
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Set ending period to 9 |
# 9 ! |
P2= |
9.001 |
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Display 1st year amortization data |
# # # |
BAL= |
118,928.63* |
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Change beginning period to 10 |
# 10 ! |
P1= |
10.001 |
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Change ending period to 21 |
# 21 ! |
P2= |
21.001 |
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Display 2nd year amortization data |
# # # |
BAL= |
117,421.60* -1,507.03* -7,242.53* |
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Move to P1 and press C to enter next range of payments |
# C |
P1= |
22.001 |
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Display P2 |
# |
P2= |
33.001 |
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Display 3rd year amortization data |
# # # |
BAL= |
115,819.62* -7,147.58* |