5 amortization of a loan – Casio fx-9750G PLUS User Manual
Page 369
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341
Investment Appraisal
19 - 4
19-5 Amortization of a Loan
This calculator can be used to calculate the principal and interest portion of a
monthly installment, the remaining principal, and amount of principal and interest
repaid up to any point.
b
a
d
e
c
1 2
m
n
a
: Interest portion of installment PM1 (
INT
)
b
: Principal portion of installment PM1 (
PRN
)
c
: Balance of principal after installment PM2 (
BAL
)
d
: Total principal from installment PM1 to payment of installment PM2 (
Σ
PRN
)
e
: Total interest from installment PM1 to payment of installment PM2 (
Σ
INT
)
*
a
+
b
= one repayment (
PMT
)
a
: INT
PM1
= I BAL
PM1–1
× i I × (PMT sign)
b
: PRN
PM1
= PMT + BAL
PM1–1
× i
c
: BAL
PM2
= BAL
PM2–1
+ PRN
PM2
d
:
Σ
PRN = PRN
PM1
+ PRN
PM1+1
+ … + PRN
PM2
e
:
Σ
INT = INT
PM1
+ INT
PM1+1
+ … + INT
PM2
PM2
PM1
PM2
PM1
BAL
0
=
PV
(
INT
1
= 0 and
PRN
1
=
PMT
at beginning of installment term)
u
u
u
u
u
Converting between the nominal interest rate and effective interest
rate
The nominal interest rate (
I
% value input by user) is converted to an effective
interest rate (
I
%') for installment loans where the number of installments per year
is different from the number of compound interest calculation periods.
I%' =
I%
(1+
)
–1
[C / Y ]
[P / Y ]
100
× [C / Y ]
{ }
×100
(Number of payments)
Amount of single payment
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