HP HP10BII, Using Manual

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AMORTISATION
Colin C Smith 2010
9
15.2. THE AMORTISATION SCHEDULE – ORDINARY ANNUITY
As for the schedule at 14.2 this was prepared using Microsoft Excel.
Month Instalment Interest Capital paid off Capital Balance
today 100,000.00
1 R 4,707.35 1,000.00 3,707.35 96,292.65
2 R 4,707.35 962.93 3,744.42 92,548.23
3 R 4,707.35 925.48 3,781.86 88,766.37
4 R 4,707.35 887.66 3,819.68 84,946.68
5 R 4,707.35 849.47 3,857.88 81,088.80
6 R 4,707.35 810.89 3,896.46 77,192.34
7 R 4,707.35 771.92 3,935.42 73,256.92
8 R 4,707.35 732.57 3,974.78 69,282.14
9 R 4,707.35 692.82 4,014.53 65,267.62
10 R 4,707.35 652.68 4,054.67 61,212.95
11 R 4,707.35 612.13 4,095.22 57,117.73
12 R 4,707.35 571.18 4,136.17 52,981.56
13 R 4,707.35 529.82 4,177.53 48,804.03
14 R 4,707.35 488.04 4,219.31 44,584.72
15 R 4,707.35 445.85 4,261.50 40,323.22
16 R 4,707.35 403.23 4,304.12 36,019.10
17 R 4,707.35 360.19 4,347.16 31,671.95
18 R 4,707.35 316.72 4,390.63 27,281.32
19 R 4,707.35 272.81 4,434.53 22,846.79
20 R 4,707.35 228.47 4,478.88 18,367.91
21 R 4,707.35 183.68 4,523.67 13,844.24
22 R 4,707.35 138.44 4,568.90 9,275.33
23 R 4,707.35 92.75 4,614.59 4,660.74
24 R 4,707.35 46.61 4,660.74 0.00
15.3 Amortising the payments to calculate the amount of capital and interest paid and the balance at the end of
each year
This step follows directly on your calculation of the instalment above.
We enter the first financial period and the
number of payments made in that period. The
amortisation function can be for any period but
here it is for a 12 ‐ month period.
This is for periods 1 ‐ 12
c
Capital paid in year 1
d
Interest paid in year 1
e
Balance at the end of year 1
HP10BII financial calculator
KEYS DISPLAY
1 INPUT 12 12 _
AMORT 1 ‐ 12
= ‐ 47,018.47
c
= ‐ 9,469.73
d
= 52,981.53
e
For the next 12 months (periods 13 – 24)
f
Capital paid in year 2
g
Interest paid in year 2
h
Balance at the end of year 2
HP10BII financial calculator
KEYS DISPLAY
AMORT 13 ‐ 24
= ‐ 52,981.59
f
= ‐ 3,506.61
f
= ‐ 0.06
h
YOU CAN CHECK THESE NUMBERS AGAINST THE AMORTISATION SCHEDULE ABOVE.
Year 1 interest
R9,469.73
Year 1 capital
R47,018.47
Year 2 interest
R3,506.61
Year 1 capital
R52,981.59