User Manual

2: TVM and Amortization Worksheets 57
Canadian Mortgages
Canadian mortgages typically require the borrower to make
monthly payments, although interest is compounded
semiannually. Additionally, mortgages are usually refinanced at
the end of a fixed period of time, such as five years.
A home buyer borrows $60,000 for 20 years at an annual
interest rate of 13 % compounded semiannually. How much are
the monthly payments and the amount necessary to pay off the
mortgage after five years?
Example: Payment
Procedure Keystrokes Display
Set all variables to defaults.
& } !
RST 0.00
Leave payments per year at 12.
& [
P/Y= 12.00

Set compounding periods per
year to 2.
#
2
!
C/Y= 2.00

Return to calculator mode.
& U
0.00
Enter number of payments
using payment multiplier.
20
& Z ,
N= 240.00

Enter interest rate per year.
13
-
I/Y= 13.00

Enter present value.
60000
.
PV= 60,000.00

Compute payment.
% /
PMT= -688.52

Example: Amortization Schedule
(continued from previous example)
Procedure Keystrokes Display
Select Amortization worksheet.
& \
P1= 1.00
Enter number of payments as
P2
using payment multiplier.
#
5
& Z !
P2= 60.00

View balance after five years.
#
BAL= 55,389.85

The monthly payment is $688.52, and $55,389.85 is required to
pay off the mortgage after five years.