Tag Payment

Time Value of Money – Calculating Lease Payments

This article explains how to calculate lease payments, focusing on equipment leases. It covers basic payment calculations, factoring in residual value and monthly payments. It also explores the complexities of advance payments, where part of the payment is made upfront. The article provides formulas and examples for calculating lease payments both with and without advance payments. For leases with advance payments, it emphasizes how these reduce the total lease amount and payment periods. The tutorial also mentions tools like financial calculators and Excel spreadsheets to simplify the process.

Solving Problems with Non-Annual Periods on the HP 12C

Many, perhaps most, time value of money problems in the real world involve other than annual time periods. For example, most consumer loans (e.g., mortgages, car loans, credit cards, etc) require monthly payments. All of the examples in the previous pages have used annual time periods for simplicity. On this page, I’ll show you how easy it is to deal…

Loan Amortization on the HP 17BII

This tutorial explains how to amortize a fixed-rate loan using the HP 17BII financial calculator. It guides users on calculating the principal and interest for individual payments or a range of payments. The article demonstrates using the calculator’s built-in functions to break down loan payments into principal and interest components and how to determine the remaining balance after each payment. Additionally, it briefly compares this method with using a spreadsheet for creating a full amortization schedule, highlighting the limitations and practical applications of the HP 17BII calculator's amortization functions.

Loan Amortization on the HP 19BII

This tutorial explains how to amortize a fixed-rate loan using the HP 19BII financial calculator. It guides users on calculating the principal and interest for individual payments or a range of payments. The article demonstrates using the calculator’s built-in functions to break down loan payments into principal and interest components and how to determine the remaining balance after each payment. Additionally, it briefly compares this method with using a spreadsheet for creating a full amortization schedule, highlighting the limitations and practical applications of the HP 19BII calculator's amortization functions.

Solving Problems with Non-Annual Periods on the TI 83 Plus

Many, perhaps most, time value of money problems in the real world involve other than annual time periods. For example, most consumer loans (e.g., mortgages, car loans, credit cards, etc.) require monthly payments. All of the examples in the previous pages have used annual time periods for simplicity. On this page, I’ll show you how easy it is to deal…

TI 83 and TI 83 Plus Tutorial, Part II

Part 2 of a TI-83 calculator tutorial on calculating money value over time. It covers how to find present and future values of annuities (regular payments) and lump sums using the built-in TVM Solver app. The tutorial explains different annuity types (regular and due) and how to solve for missing variables like payment amount, interest rate, or number of periods. It also touches on perpetuities (infinite payments) and how to approximate their present value with the calculator.

Bond Valuation on the HP 19BII Calculator

A bond is a debt instrument, usually tradable, that represents a debt owed by the issuer to the owner of the bond. Most commonly, bonds are promises to pay a fixed rate of interest for a number of years, and then to repay the principal on the maturity date. In the U.S. bonds typically pay interest every six months (semi-annually),…

Solving Problems with Non-Annual Periods on the HP 19BII

HP 19BII Tutorial, Part II

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 19BII to calculate the present and future values of regular annuities and annuities due. A regular annuity is…

Loan Amortization on the HP 10BII+

In this tutorial we will see how to amortize a fixed-rate loan using the HP 10BII+ calculator from Hewlett Packard. Specifically, we will see how to calculate the amount of principal and interest for any particular payment, or range of payments. For example, you may wish to know how much your principal or interest payments will be for the first…

Regular Annuity Formulas

These are the main formulas that are needed to work with regular annuity cash flows (Definition/Tutorial). Please note that these formulas work only on a payment date, not between payment dates. This is the same restriction used (but not stated) in financial calculators and spreadsheet functions. I use MathJax to display these formulas. You can click the equations to show…

Loan Amortization on the HP 20b

This tutorial explains how to amortize a fixed-rate loan using the HP 20b financial calculator. It guides users on calculating the principal and interest for individual payments or a range of payments. The article demonstrates using the calculator’s built-in functions to break down loan payments into principal and interest components and how to determine the remaining balance after each payment. Additionally, it briefly compares this method with using a spreadsheet for creating a full amortization schedule, highlighting the limitations and practical applications of the HP 20b calculator's amortization functions.

Solving Problems with Non-Annual Periods on the HP 17BII

Many, perhaps most, time value of money problems in the real world involve other than annual time periods. For example, most consumer loans (e.g., mortgages, car loans, credit cards, etc.) require monthly payments. All of the examples in the previous pages have used annual time periods for simplicity. On this page, I’ll show you how easy it is to deal…

Solving Problems with Non-Annual Periods on the HP 10BII+

HP 17BII Tutorial, Part II

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 17BII to calculate the present and future values of regular annuities and annuities due. A regular annuity is…