Calculated Industries 3420 User Guide - Manual (Page 66)

U SER ’ S G UIDE — 65
Bi-Weekly Loans
Your calculator includes a built-in Bi-Weekly loan function ( s T ),
which allows you to convert established, fully amortized monthly loans
into Bi-Weeklies (in which one-half the monthly payment is made
every two weeks). Because you make two extra half-payments per
year (since 26 Bi-Weekly payments is like making 13 payments/year),
these kinds of loans can amount to large interest savings and a sub-
stantial reduction in the time it takes to pay them off.
You begin these problems by setting up the initial monthly loan and
then pressing
s T . A second press of T shows the total
interest savings over the entire loan, a third press calculates the
total interest paid, a fourth press shows the total principal paid, and
a fifth press shows the total payments. A press of
p will calculate
the Bi-weekly Payment.
Bi-Weekly Term Reduction and Payment
Find the monthly payment on a 30-year, $212,500 loan at 7.85%
annual interest. Then convert it to a Bi-Weekly and find out how
many years it will take to pay off this loan, the total interest savings,
total payments and the Bi-Weekly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 2 1 2 5 0 0 l 212,500.00
Enter Term in years 3 0 T 30.00
Enter annual Interest 7 • 8 5 ˆ 7.85
Find monthly P&I Payment p “run” 1,537.09
Find Bi-Weekly Term s T “run” 22.97
Find total Interest savings T 94,305.23
Find total Interest paid T 246,545.97
Find total Principal T 212,500.00
Find total Payments T 459,045.97
Find Bi-Weekly Payment p 768.54
Clear calculator o o 0.00
3420UG-E-A 7/2/04 9:06 AM Page 65