Time Value of Money Calculations
74
Step 4
Add the results of ’Step 2’ and ’Step 3’.
Amortization
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.
Figure 16 Graph
:Ì
0.00
Stores zero payment for this step
of solution.
JV:::yÉ
-15,000.00
Stores value to discount.
Ï
10,479.21
Calculates the present value of
last cash flow.
Table 6-16 Calculating the present value of lease
Keys
Display
Description
1p4
108,356.77
Calculates the present (capitalized)
value of lease. (Rounding
discrepancies are explained on
page 67.)
Table 6-15 Calculating the present value of the last cash flow
Keys
Display
Description
Summary of Contents for 10bII+
Page 1: ...i HP 10bII Financial Calculator User s Guide HP Part Number NW239 90001 Edition 1 May 2010 ...
Page 3: ...iii HP 10bII Financial Calculator ...
Page 30: ...At a Glance 22 ...
Page 144: ...Statistical Calculations 136 ...
Page 183: ...Warranty Regulatory and Contact Information 9 ...
Page 184: ...Warranty Regulatory and Contact Information 10 ...