These examples use the first formula in Time Value of Money Compound Interest Formulas.
What are the monthly payments for a 75,000 loan for 30 years at 5.5% per year with 12 payments per year and compounding periods per year?
| Value | Keystrokes | Display | Description |
|---|---|---|---|
| shift, C TVM | Clears the financial variables. | ||
| shift, B/E | To toggle the BEG / END mode so the BEG indicator is not displayed. | ||
| 12 | STO, P/YR | 12.00 | Sets the payments per year. This also sets the compounding periods to the same value if using the Focused Calculator. |
| 30 | shift, xP/YR | 360.00 | Sets the total number of payments to the value in x (30) times the payments per year. |
| 5.5 | I/YR | 5.5 | Stores the annual interest rate. |
| 75000 | PV | 75,000.00 | Stores the loan amount, PV. |
| PMT | -425.84 | Calculate the monthly payment. |
What if the loan interest is compounded 2 time per year and payments are made 4 times per year?
| Value | Keystrokes | Display | Description |
|---|---|---|---|
| 4 | STO, P/YR | 4 | Sets the payments per year. This also sets the compounding periods to the same value if using the Focused Calculator. |
| 2 | STO, C/YR | 2 | Sets the compounding periods per year. |
| 30 | shift, xP/YR | 120 | Sets the total number of payments to the value in x (30) times the payments per year. |
| PMT | -1,274.55 | Calculate the quarterly payment. |
If you only made payments of -1,200 per quarter, what would the balance (FV) be at the end of 30 years?
| Value | Keystrokes | Display | Description |
|---|---|---|---|
| -1200 | PMT | -1200 | Store the payment amount. |
| FV | -22,338.22 | Calculate the future value. |