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12-8 Using the Finance Solver
3. Press the soft menu key to amortize the new
batch of payments. Repeat steps 1 through 3 as
often as needed.
Example 4 - Amortization for home mortgage
For the results of Example 3, show the amortization of the
next 10 years of the mortgage loan. First, press the
soft menu key. Then, keeping 120 in the PAYMENTS
field, press the soft menu key to produce the results
shown below.
To amortize a series of future payments starting at payment
p:
1. Calculate the balance of the loan at payment p-1.
2. Store the new balance in PV using the soft
menu key.
3. Amortize the series of payments starting at the new
PV.
The amortization operation reads the values from the
TVM variables, rounds the numbers it gets from PV and
PMT to the current display mode, then calculates the
amortization rounded to the same setting. The original
variables are not changed, except for PV, which is
updated after each amortization.
hp40g+.book Page 8 Friday, December 9, 2005 1:03 AM