Finance Calculator
Texas Instruments 83 Plus


Loan Amortization

The loan amortization function is used to find the remaining balance, principle, and interest paid, of a loan with equal end of the month payments.  A 36 month loan with an initial balance of $20,000 and an effective monthly interest rate of 2.00% will be used. 

Step 1 will be to find the amount of the 36 equal monthly payments.

Compounding should remain at P/Y = 1, C/Y = 1.
PMT should be at END

        Enter Present Value: PV = -20,000
        Enter Future Value: FV = 0
        Enter number of periods: N = 36
        Enter interest rate: i (I/Y) = 2
        Calculate unknown: ALPHA, SOLVE, PMT, answer is $784.657

Step 2 will be to find the amount of the 12th payment allocated to interest and the amount allocated to principle.     

2nd QUIT (next to the 2nd key)
APPS, FINANCE
scroll down to 9: bal( and press ENTER.
enter 12 in bal(. Note: it should look like bal(12, now press ENTER

The screen should now read bal (12 = -14,840.95, which is the remaining balance of the loan

Press APPS, FINANCE, scroll down to 0: Prn (, ENTER
enter 12,12 (the comma can be found on the fifth row second column) Note: it should look like Prn (12, 12

the screen should now read Prn = 478.27, this is the amount of the payment assigned to principle.

Press 2nd, FINANCE, scroll down to A: Int (, ENTER
enter 12,12 Note: it should look like Int (12,12

the screen should now read Int = 306.38, this is the amount of the payment assigned to pay off interest.

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Last Updated on 1 May 2002, e-mail any comments to: robert.balik@wmich.edu