Calculated Industries 3416 User Guide - Manual (Page 30)

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Paying Off a Mortgage Early (Making Larger Payments)
How long does it take to pay off a 30-year, fixed-rate mortgage of
$150,000 at 8.5% interest if you add an extra $200 to the mortgage
payment each month?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter loan amount 1 5 0 ) l 150,000.00
Enter interest 8 • 5 ˆ 8.50
Enter term 3 0 T 30.00
Find monthly P&I payment p 1,153.37
Add additional payment
amount + 2 0 0 = 1,353.37
Enter as new
payment amount p 1,353.37
Find reduced loan term T “run” 18.15
Simple Interest vs. Compound Interest
If you borrow $5,000 at 6% simple interest, how much will you owe
at the end of 5 years?
*This is a simple math problem and does not require the use of TVM keys.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Multiply loan amount
by interest 5 ) x 6 % = 300.00
Multiply by term x 5 = 1,500.00
Add original loan amount + 5 ) = 6,500.00
If the loan is compounded monthly, what will you owe?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter loan amount 5 ) l 5,000.00
Enter term 5 T 5.00
Enter interest 6 ˆ 6.00
Find future value s l “run” 6,744.25