User Manual

2: TVM and Amortization Worksheets 37

Basic Loan Calculations—Payments

Example: Monthly Payment

You are considering a 30-year mortgage at 8.5% for $75,000.

How much would the monthly payment be?

Procedure Keystrokes Display

Set all variables to defaults.

}

RST 0.00

Enter number of payments

using payment multiplier.

N= 360.00



Enter interest rate.

8.5

I/Y= 8.50



Enter loan amount.

75000

PV= 75,000.00



Compute payment.

PMT= -576.69



The monthly payment would be $576.69.

Example: Quarterly Payment

(continued from previous example)

Your mortgage company also offers an option for a quarterly

mortgage with quarterly compounding.

How much would your quarterly payment be? (You do not need

to enter the loan amount or the interest rate. The compounding

periods is automatically reset to equal the payments periods.)

Procedure Keystrokes Display

Set payments per year to 4.

[

P/Y= 4.00



Return to calculator mode.

0.00

Enter number of payments

using payment multiplier.

N= 120.00



Compute payment.

PMT= -1,732.71



The quarterly payment would be $1,732.71.