I borrowed 15000 to finance my wedding. The fully amortizing loan at 11 percent requires equal payments at end of each of the next seven years. What is the principal portion of the first payment. I plan to borrow 50000 for 5 years. The bank will lend this money at 9 percent and require the loan to be paid off in five equal end of year payments. How much payment should I make in order to fully amortize this payment. I have a brand new ba 11 plus professional which i have never used. I m unable to ascertain the exact steps involved to compute the requisite payments for both these problems and others like it. For the second problem I straightaway put in n -5 i/y-9, pv - 50000 but then how do I compute the pmt as 12854.62?? Can someone please please let me know the exact breakdown of the steps involved in using the calculator to solve such probs???
I borrowed 15000 to finance my wedding. The fully amortizing loan at 11 percent requires equal payments at end of each of the next seven years. What is the principal portion of the first payment. 2nd-CLR TVM PV=-15000 I/Y=11 N=7 FV=0 PMT=? CPT PMT=3183.23 Now Hit 2nd-Amort Button P1=1 Enter (on top) Down arrow P2=2 Enter (on top) Down arrow twice -> PRN=3235.11 Ans. I plan to borrow 50000 for 5 years. The bank will lend this money at 9 percent and require the loan to be paid off in five equal end of year payments. How much payment should I make in order to fully amortize this payment. 2nd-CLR TVM 2nd BGN -> Make sure it is send to END. PV=-50000 N=5 I/Y=9 FV=0 CPT PMT PMT=12854.62
Thanks a lot mate…that really helped. Cheers!!