A portion of loan payments goes toward covering the interest due on the loan, while the rest reduces the loan's balance. Early in a loan's Me, its balance is high and a substantial portion goes toward interest, but over time the balance dedines, as does the portion paid toward interest. An amortization schedule Illustrates how interest is covered and principal repaid by loan payments over time. Suppose you have secured an 8%, $500,000 bank loan to be paid off in seven equat end-of-year annual payments. The Amortization application allows you to spedity payment(s) to analyze and can tell you the following information: PER INT Period(s) analyzed Amount paid toward interest Amount paid toward repaying the loan principal Loan balance after the last analyzed payment PRIN BAL Keep the payment data in your calculator and press Orange (AMORT) to access the Amortization application. Notice an indicator appears near the top of the display as you extract various data, the amortization indicator changes to reflect the data shown. The Images below show the indicator & accessed Tast, speare the payment Sales analyzed. The default sitting and rear by the first payment is being analyzed. To serent through the amortation application repeatedly presse equat sign and you will see the indicator de cited above and the corresponding data shown below. How much is paid toward interest and principal in the first year? What is the remaining balance after the first year? PRIN ANT reparing for Finance - HP 10B Financial Calculator A portion of loan payments goes toward covering the interest due on the loan, while the rest reduces the loan's balance. Early in a loan's life, its balance is high and a substantial portion goes toward interest, but over time the balance dedines, as does the portion paid toward interest. An amortization schedule illustrates how interest is covered and principal repaid by loan payments over time. Suppose you have secured an 8%, $500,000 bank loan to be paid off in seven equal end-of-year annual payments. The Amortization application allows you to specify payment(s) to analyze and can tell you the following information: PER INT Period(s) analyzed Amount paid toward interest Amount paid toward repaying the loan principal Loan balance after the last analyzed payment PRIN BAL Keep the payment data in your calculator and press Orange (AMORT] to access the Amortization application. Notice an indicator appears near the top of the display; as you extract various data, the amortization indicator changes to reflect the data shown. The images below show the indicator a various stages as data is accessed. AMORT AMORT PER PRIN A MORT -AMORT NT BAL Preparing for Finance - HP 10Bll Financial Calculator various stages as data is accessed. AMORT AMORT PRIN PER AMORT AMORT NT BAL First, specify the payments being analyzed. The default setting is "1-1" and means only the first payment is being analyzed. To scroll through the amortization application, repeatedly press the equal sign (=) and you will see the indicators described above and the corresponding data shown below. How much is paid toward interest and principal in the first year? What is the remaining balance after the first year? PRIN INT BAL Grade It Now Save & Continue Continue without saving
