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# HP 10bii Calculator - Lease Calculations

Calculator symbol key
The procedures in this document use the following text to represent symbol keys:
 Key Description Text Representation colored key; shift key SHIFT
Amortization basics
Amortization is the process of dividing a payment into the amount that applies to interest and the amount that applies to principal. Payments near the beginning of a loan contribute more interest, and less principal, than payments near the end of a loan.
The SHIFT, AMORT keys on the HP10bii allows for the calculation of:
• The amount applied to interest in a range of payments.
• The amount applied to principal in a range of payments.
• The loan balance after a specified number of payments are made.
The SHIFT, AMORT function assumes a payment was just calculated or the appropriate amortization values have been stored in I/YR, PV, FV, PMT, and P/YR.
 Keys Description I/YR Annual nominal interest rate PV Starting Balance FV Ending balance PMT Payment amount (rounded to the display format) SHIFT, then P/YR Number of payments per year
The numbers displayed for interest, principal, and balance are rounded to the current display setting.
To amortize
To amortize a single payment, enter the period number, and press SHIFT, then AMORT. The HP 10bii displays the annunciator PER followed by the starting and ending payments that will be amortized.
Press [=] to see interest (INT). Press [=] again to see the principal (PRIN) and again to see the balance (BAL). Continue pressing [=] to cycle through interest, principal, and balance.
Press SHIFT, then AMORT again to move to the next set of periods. This auto-increment feature saves the keystrokes of entering the new starting and ending periods.
If store, recall, or any other calculations are performed during amortization, pressing [=] will no longer cycle through interest, principal, and balance. To resume amortization with the same set of periods, press RCL, SHIFT, then AMORT.
Example of amortizing a range of payments
Calculate the first two years of the annual amortization schedule for a 30 year, \$180,000 mortgage, at 7.75 percent annual interest with monthly payments.
Set to END Mode. Press SHIFT, then BEG/END if BEGIN annunciator is displayed.
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets payment per year Press 30, SHIFT, then xP/YR 360.00 Stores total number of payments Press 7, [.], 75, then I/YR 7.75 Stores interest rate per year Press 180000, then PV 180,000.00 Stores present value Press 0, then FV 0.00 Stores future value Press PMT -1,289.54 Calculates monthly payment
If the mortgage payment is already known, it can be entered and stored just like the other four values. Next, amortize for the first year.
 Keys Display Description Press 1, INPUT, then 12 12_ Enters starting and ending periods Press SHIFT, then AMORT 1-12 Displays the PER annunciator and range Press [=] -1,579.82 Displays the PRIN annunciator and the principal paid in the first year Press [=] -13, 894.66 Displays the INT annunciator and the interest paid in the first year Press [=] 178,420.18 Displays the BAL annunciator and the loan balance after one year
The amount paid toward interest and principal (13,894.67 + 1,579.84 =15,474.51) equals the total of twelve monthly payments (12 x 1,289.54 =15,474.51). The remaining balance equals the initial mortgage, less the amount applied toward principal (180,000 - 1,579.84 = 178,420.160.
Example of amortizing a single payment
Amortize the 1st, 25th, and 54th payments of a five year car lease. The lease amount is \$14,250 and the interest rate is 11.5 percent. Payments are monthly and begin immediately.
Set to BEGIN mode. Press SHIFT, then BEG/END if BEGIN annunciator is not displayed.
 Keys Display Description Press 12, SHIFT, then P/YR 12.00 Sets payment per year Press 5, SHIFT, then xP/YR 60.00 Stores number of payments Press 11, [.], 5, then I/YR 11.50 Stores interest per year Press 14250, then PV 14,250.00 Stores present value Press 0, then FV 0.00 Stores future value Press PMT -310.42 Calculates monthly payment
Amortize the 1st, 25, and 54th payments.
 Keys Display Description Press 1, then INPUT 1.00 Enter first payment Press SHIFT, then AMORT 1- 1 Displays PER and the amortized payment period Press [=] -310.42 Displays PRIN and the first principal payment Press [=] 0.00 Displays INT and the interest Press [=] 13,939.58 Displays BAL and the loan balance after one payment Press 25, then INPUT 25.00 Enters payment to amortization Press SHIFT, then AMORT 25- 25 Displays PER and the amortized payment period Press [=] -220.21 Displays PRIN and the principal paid on the 25th payment Press [=] -90.21 Displays INT and the interest paid on the 25th payment Press [=] 9,193.28 Displays BAL and the balance after the 25th payment Press 54, then INPUT 54.004 Enters payment to amortize Press SHIFT, then AMORT 54- 54 Displays PER and the amortized payment period Press [=] -290.37 Displays PRIN and the principal paid on the 54th payment Press [=] -20.05 Displays INT and the interest paid on the 54th payment Press [=] 1,801.57 Displays BAL and the balance after the 54th payment

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