Balance After a Specified Payment

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A group of sellers considers financing the sale price of a property for

$82,000 at 7% annual interest, amortized over a 30-year term with a

balloon payment due after five years. They want to know:

• Amount of the monthly payment

• Amount of interest they will receive

• Remaining balance at the end of the term (balloon payment)

Computing the Monthly Payment

Display 2nd year amortization data. #

#

#

BAL=

PRN=

INT=

117,421.60*

_-1,507.03*

-7,242.53*

Move to P1 and press % to enter

next range of payments.

# % P1= 22.00

Display P2. # P2= 33.00

Display 3rd year amortization data. #

#

#

BAL=

PRN=

INT=

115,819.62*

-1601.98*

-7,147.58*

To Press Display

Set all variables to defaults. & } ! RST 0.00

Set payments per year to 12. & [ 12 ! P/Y= 12.00

Return to standard-calculator

mode.

& U 0.00

Enter number of payments

using payment multiplier.

30 & Z , N= 360.00

Enter interest rate. 7 - I/Y= 7.00

Enter loan amount. 82000 . PV= 82,000.00

Compute payment. % / PMT= -545.55

To Press Display

Generating an Amortization Schedule for Interest and

Balloon Payment

If the sellers financed the sale, they would receive:

• Monthly payment: $545.55 for five years

• Interest: $27,790.72 over the five years

• Balloon payment: $77,187.72

To Press Display

Select Amortization worksheet. & \ P1= 1.00

Enter end period (five years). # 5 & Z ! P2= 60.00

View balance due after five

years (balloon payment).

# BAL= 77,187.72

View interest paid after five

years.

# # INT= -27,920.72

Cash Flow Worksheet 41

A group of sellers considers financing the sale price of a property for

$82,000 at 7% annual interest, amortized over a 30-year term with a

balloon payment due after five years. They want to know:

• Amount of the monthly payment

• Amount of interest they will receive

• Remaining balance at the end of the term (balloon payment)

Computing the Monthly Payment

Display 2nd year amortization data. #

#

#

BAL=

PRN=

INT=

117,421.60*

_-1,507.03*

-7,242.53*

Move to P1 and press % to enter

next range of payments.

# % P1= 22.00

Display P2. # P2= 33.00

Display 3rd year amortization data. #

#

#

BAL=

PRN=

INT=

115,819.62*

-1601.98*

-7,147.58*

To Press Display

Set all variables to defaults. & } ! RST 0.00

Set payments per year to 12. & [ 12 ! P/Y= 12.00

Return to standard-calculator

mode.

& U 0.00

Enter number of payments

using payment multiplier.

30 & Z , N= 360.00

Enter interest rate. 7 - I/Y= 7.00

Enter loan amount. 82000 . PV= 82,000.00

Compute payment. % / PMT= -545.55

To Press Display

Generating an Amortization Schedule for Interest and

Balloon Payment

If the sellers financed the sale, they would receive:

• Monthly payment: $545.55 for five years

• Interest: $27,790.72 over the five years

• Balloon payment: $77,187.72

To Press Display

Select Amortization worksheet. & \ P1= 1.00

Enter end period (five years). # 5 & Z ! P2= 60.00

View balance due after five

years (balloon payment).

# BAL= 77,187.72

View interest paid after five

years.

# # INT= -27,920.72

Cash Flow Worksheet 41