Amortization (AMORT) Function
- AMORT is located on the 2nd shelf above the PV button, as illustrated in the photo.
- There are five variables (use ↓ or ↑ to scroll).
- P1 is the starting payment number. The calculator can work with a single payment or a series of payments.
- P2 is the ending payment number. This number is the same as P1 when you are concerned with just a single payment. When working with a series of payments, you can set it to a higher number.
- BAL is the principal balance remaining after the payment number entered into the P2 variable. The cash flow sign is correct as indicated on the calculator display.
- PRN is the principal portion of the payments from P1 to P2 inclusive. Ignore the cash flow sign.
- INT is the interest portion of the payments from P1 to P2 inclusive. Ignore the cash flow sign.
3. To use the Amortization function, the commands are as follows:
- Enter all seven of the time value of money variables accurately (N, I/Y, PV, PMT, FV, P/Y, and C/Y). If PMT was computed, you must re-enter it with only two decimals while retaining the correct cash flow sign convention.
- Press 2nd AMORT.
- Enter a value for P1 and press Enter followed by ↓.
- Enter a value for P2 and press Enter followed by ↓. Note that the higher the numbers entered in P1 or P2, the longer it will take the calculator to compute the outputs. It is possible that the calculator will go blank and take a few moments before displaying the outputs.
- Using ↓ and ↑, scroll through BAL, PRN, and INT to read the output
Figure 13.C: BAII Plus Calculator indicating the button for the AMORT Function. [Back to Figure 13.C]