Section 3: Basic Financial Functions 55
To obtain an amortization schedule:
1. Press fCLEARG to clear the financial registers.
2. Enter the periodic interest rate, using ¼ or C.
3. Enter the amount of the loan (the principal), using $.
4. Key in the periodic payment, then press ÞP (the sign of PMT must
be negative, in accordance with the cash flow sign convention).
5. Press g× or (for most direct reduction loans) g to set the
payment mode.
6. Key in the number of payments to be amortized.
7. Press f! to display the amount from those payments applied toward
interest.
8. Press ~ to display the amount from those payments applied toward the
principal.
9. To display the number of payments just amortized, press dd.
10. To display the remaining balance of the loan, press :$.
11. To display the total number of payments amortized, press :n.
Example: For a house you’re about to buy, you can obtain a 25-year mortgage
for $50,000 at 13¼% annual interest. This requires payments of $573.35 (at the
end of each month). Find the amounts that would be applied to interest and to the
principal from the first year’s payments.
Keystrokes Display
fCLEARG
13.25gC
1.10
Enters i.
50000$
50,000.00
Enters PV.
573.35ÞP
–573.35
Enters PMT (with minus sign for
cash paid out).
gÂ
–573.35
Sets payment mode to End.
12f!
–6,608.89
Portion of first year’s payments (12
months) applied to interest.
~
–271.31
Portion of first year’s payments
applied to principal.
:$
49,728.69
Balance remaining after 1 year.
:n
12.00
Total number of payments
amortized.
