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Section 3: Basic Financial Functions 61
File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 61 of 275
Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm
Example 1:
In Example 1 on page 59, we calculated that the payment amount
on a 29-year, $243,400 mortgage at 5.25% annual interest compounded monthly
is $1,363.29. If the seller requests a balloon payment at the end of 5 years, what
would be the amount of the balloon
?
Keystrokes Display
f
CLEAR
G
5
gA
60.00
Calculates and stores n.
5.25
gC
0.44
Calculates and stores i.
243400
$
243,400.00
Stores PV.
1363.29
ÞP
–1,363.29
Stores PMT (with minus sign for
cash paid out).
gÂ
–1,363.29
Sets payment mode to End.
M
–222,975.98
Amount of balloon payment.
Example 2:
If you deposit $50 a month (at the beginning of each month) into a
new account that pays 6.25% annual interest compounded monthly, how much
will you have in the account after 2 years
?