Lending; Loan With A Constant Amount Paid Towards Principal - HP 12c Platinum Reference Manual

Loan With a Constant Amount Paid Towards
Principal
This type of loan is structured such that the principal is repaid in equal installments with
the interest paid in addition. Therefore each periodic payment has a constant amount
applied toward the principle and a varying amount of interest.
Loan Reduction Schedule
If the constant periodic payment to principal, annual interest rate, and loan amount are
known, the total payment, interest portion of each payment, and remaining balance after
each successive payment may be calculated as follows:
RPN Mode:
1. Key in the constant periodic payment to principal and press ?0.
2. Key in periodic interest rate and press \\\.
3. Key in the loan amount. If you wish to skip to another time period, press \.
Then key in the number of payments to be skipped, and press :0§-.
4. Press ~b to obtain the interest portion of the payment.
5.
Press :0+ to obtain the total payment.
6. Press O:0- to obtain the remaining balance of the loan.
7. Return to step 4 for each successive payment.
ALG Mode:
1. Key in the constant periodic payment to principal and press ?0.
2.
Key in the loan amount and press ?1.
3. Key in periodic interest rate and press ?2.
If you wish to skip to another time period, key in the number of payments to be
skipped, and press §:0³?-1.
4. Press :1§:2b+ to obtain the interest portion of the payment.
5. Press :0?-1³ to obtain the total payment.
6.
Press :1 to obtain the remaining balance of the loan.
7. Return to step 4 for each successive payment.

Lending

24