Calculated Industries 3420 User Guide - Manual (Page 30)

U SER ’ S G UIDE — 29
Finding a Quarterly Payment
Find the quarterly payment on a 10-year loan of $15,000 with an
annual interest rate of 12%.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Set to 4 Payments/year 4 s ÷ 4.00
Enter Loan Amount 1 5 ) l 15,000.00
Enter Term in years 1 0 T 10.00
Enter annual Interest 1 2 ˆ 12.00
Find quarterly P&I Payment p “run” 644.36
Reset to 12 Payments/year 1 2 s ÷ “run” 12.00
Bi-Weekly Loans
Your calculator includes a built-in Bi-Weekly loan function ( s T ),
which allows you to convert established, fully amortized monthly
loans into Bi-Weeklies (in which one-half the monthly payment is
made every two weeks). Because you make two extra half-payments
per year (since 26 Bi-Weekly payments is like making 13 payments/
year), these kinds of loans can amount to large interest savings and
a substantial reduction in the time it takes to pay them off.
You begin these problems by setting up the initial monthly loan and
then pressing
s T . A second press of T shows the total
interest savings over the entire loan, a third press calculates the
total interest paid, a fourth press shows the total principal paid, and
a fifth press shows the total payments. A press of
p will calculate
the Bi-Weekly payment.
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