Doing Amortization with AMRT
QED Education Scientific
7
SOLVE
AMRT
1
EXE
2
EXE
SOLVE
4
CMPD
1
EXE
EXE
SOLVE
0
Ans
2
EXE
6
6
SOLVE
SHIFT
CTLG
COMP
EXE
+
SHIFT
CTLG
EXE
EXE
Now scroll up to select [PMT] and solve it.
The monthly repayment amount is $629.81. Next, find the outstanding principal after
2 years.
Enter AMRT mode and scroll down to enter 1 for [PM1] and 24 for [PM2]. Then,
scroll to select [BAL:Solve] and solve it.
The new loan duration will be calculated using this new outstanding balance where
the monthly payment remains at $629.81 but the interest rate is now at
%
10
12
=
j
.
To find the changed loan duration we return to CMPD mode, enter the new
outstanding balance as PV and enter 10 for [
I%
]. Note that the new outstanding
balance is now stored in the Answer Memory.
Once these values are entered, scroll up to select [n] and solve it.
Thus there are 265 more payment of $629.81 plus a final smaller payment. In other
words the new loan duration is 266 months, or total is 24 + 266 = 290 months.
Finally, we find the future value of the repayment with loan duration of 266 months;
the difference between this future value and monthly payment is the final payment.
While in CMPD mode, enter 266 for [n], and scroll down to select [FV] and solve it.
Now calculate PMT + FV (FV is negative) at COMP mode.
Therefore the final, smaller payment is $538.92.
█
Output: PMT = 629.8081691
•
•
•
Output: BAL = -67255.23435
Output: n = 265.8551734
Output: FV = -90.88962559
•
•
(VARS)
Output: PMT + FV = 538.9185435
