Manual

292 Finance app

payment. Find the size of the balloon payment—that is,

the value of the mortgage after 10 years of payment.

The following cash flow diagram illustrates the case of a

mortgage with balloon payment:

1. Start the Finance app:

Select Finance

2. Return all fields to their default values:

3. Enter the known TVM

variables, as shown

in the figure.

4. Highlight PMT and

tap . The PMT field shows –984.10. In other

words, the monthly payments are $948.10.

5. To determine the balloon payment or future value (FV)

for the mortgage after 10 years, enter 120 for N,

highlight FV, and tap .

The FV field shows –127,164.19, indicating that the

future value of the loan (that is, how much is still

owing) as $127,164.19.