Installment Loan Calculator
how can i calculate amortization on the BA II Plus calculator?
You have just taken out an installment loan for
$100,000. Assume that the loan will be repaid in 12
equal monthly installments of $9,456 and that the
first payment will be due one month from today.
How much of your third monthly payment will go
toward the repayment of principal?
a.$7,757.22 b. $6,359.12
c. $7,212.50 d. $7,925.88
e.$8,333.33
I’m going to assume you don’t know how to enter it in to the calculator. Enter:
100,000 press PV
12 press N
-9,456 press PMT
0 Press FV
Then, 2nd then AMORT (Over the PV button)
“P1=” comes up. Press 3, then enter.
Press the down arrow.
“P2=” comes up. Press 3, then enter, again.
Press down arrow to see the balance of the loan. Press one more time to see PRN=. It ought to read -7,757 or answer A.
simpLe interest Loan caLcuLator formuLa
