Calculate Amortization Using TI BA II Plus
This movie clip teaches you how to calculate amortization with TI BA II Plus Calculator.
Assume in a house mortgage, you apply for a loan of $500,000 with monthly payment at 6.8% APR for 30 years. How much do you have to pay in the first month of the first year much is for interest and principle? How about for the first month of 11th year and the last month?
**Please note that P/Y has already been pre-set to 12 in the
following movie clip.
|
|
So, the monthly payment is $3259.6.
In the 1st month, you pay 426.3 for principal, 2833 for interest. And the balance is $499,574.
In the 1st month of the 11th year, you pay 840 for principal 2420. And the balance is 426, 182.
June 16th, 2007 in
Alt. Investments, CFA - LEVEL 1, CFA Videos, Financial Statements, Tips Posted by Editor
I thought the end of the 10th year is 120th month. Hence the 1st month (begining) of the 10th year would be 109th month. Bal = 435,953.42 , Principal = 784.78 , Interest = 2,474.85 .
Please clarify. Thanks.
Hi Paul, you are right. It’s typos. It is updated now. Thanks!
Hi, I could not hear anything and hard a hard time following for that reason. My volume is turned on and such.
SK, sorry, this video clip has no sound. It only shows you how to press the keys. Thanks!