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VICTOR TECHNOLOGY
19
Determining Number of Periods: Solving for n.
To determine the number of compounding periods and the number of
payments:
¾ Touch b CLEAR FIN to reset financial registers
¾ Use i or r 12÷ to enter periodic interest rate.
¾ Enter values for PV(present value), PMT (amount of payment), FV
(future value)
¾ Select payment function by touching r BEG or r. END
¾ Touch n to calculate number of periods or payments
Example
ENTRIES (RPN) DISPLAY
b FIN
0.00
Clears the financial registers.
6 r i.
0.50
Displays the interest rate of 6% per year or 0.5%
per month.
400000 PV
400.000.00
Displays the loan amount or present value.
2398.202 CHS PMT
-2,398.20
Displays the monthly payment.
n.
360.00
Displays the number of periods (months) required
to pay off the loan.
Loan With Balloon Payment
A common transaction is a loan with a balloon payment. In this case, the
borrower makes a fixed payment each period until the end of the loan term. At
the end of the term, the borrower makes one large final payment. The example
below illustrates a $400,000 loan, at 6% annual interest paid monthly for 30
years with a balloon payment of $70,000.