A Calculation Formulas

a

: Interest portion of payment PM1 (INT)

INT

PM1

 = I BAL

PM1 1

   i I   (PMT sign)

b

: Principal portion of payment PM1 (PRN)

PRN

PM1

 = PMT + BAL

PM1 1 

  i

c

: Principal balance upon completion of payment PM2

(BAL)

BAL

PM2

 = BAL

PM2 1

 + PRN

PM2 

d

: Total principal paid from payment PM1 to payment PM2

( PRN)

PM2

 PRN = PRN

PM1

 + PRN

PM1+1

 +   + PRN

PM2

PM1

e

: Total interest paid from payment PM1 to payment PM2

( INT)

a

 + 

b

 = one repayment (PMT)

PM2

 INT = INT

PM1

 + INT

PM1+1

 +   + INT

PM2

PM1

BAL

0

 = PV

 ....................... Payment: End  

(Setup Screen)

INT

1

 = 0

,

 PRN

1

 = PMT

 ... Payment: Begin  

(Setup Screen)

Converting between the Nominal Interest Rate and

Effective Interest Rate

The nominal interest rate (

I

 % value input by user) is

converted to an effective interest rate (

I

 % ) for installment

loans where the number of annual payments is different

from the number of annual compoundings calculation

periods.

[C / Y ]

I%

[P / Y ]

I%  =  (1+

)

 1

 100 

100   [C / Y ]

The following calculation is performed after conversion from

the nominal interest rate to the effective interest rate, and

the result is used for all subsequent calculations.

i = I%  100 

k Conversion Mode

  The Conversion (CNVR) Mode lets you convert between

the nominal interest rate (APR) and effective interest rate

(EFF).

E 59