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328
Example Calculate the interest rate required to repay a $2,300 balance
on a loan in two years paying back $100 per month, when
interest is compounded monthly.
Perform the following key operation from the input screen.
c*bcw(Input
n = 2 × 12.)
c
cdaaw(PV = 2,300)
-baaw(
PMT = –100)
aw(FV = 0)
bcw(Monthly installment)
(Monthly compounding)
2(
I%)
uu
uu
uLoan when final installment is greater than other installments
Input Condition: Total of equal amount payments is greater than the difference
between the loan amount and final payment amount.
Formula Representation of Input Condition:
PV, PMT, FV do not equal zero.
PV + FV > – n × PMT when FV > PV
PV
+ FV < – n × PMT when FV < PV
Example Calculate the interest rate required to repay a $2,500 balance
on a loan in two years (24 installments) paying back $100 per
month and a final $200 installment, when interest is com-
pounded monthly.
Perform the following key operation from the input screen.
c*bcw(Input
n = 2 × 12.)
c
cfaaw(PV = 2,500)
-baaw(PMT = –100)
-caaw(
FV = –200)
bcw(Monthly installment)
(Monthly compounding)
2(
I%)
19 - 3 Compound Interest Calculations
The value you input for
P/Y (the
number of installment periods per
year) is also automatically input for
C/Y (the number of compounding
periods per year). You can input
another value for C/Y if you want.
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