Principal Repayment

Exercise ID: tvm-real-015

Exam TrapsAmortization

Description

Mortgage $300,000, 30 years, 4.5% monthly. Calculate the principal portion of the second monthly payment.

Given Values

360

I/Y

0.375%

300000

PMT

Objective

Calculate PRN

Steps

Total 20 steps

Step 1:Clear TVM Registers

💡 Always clear TVM before starting a new problem.

Key Sequence:

2ndFV

Before Key Press:

0.00

After Key Press:

0.00

⏱ 1500ms

Step 2:Input N = 360

Key Sequence:

360

Before Key Press:

0.00

After Key Press:

360

⏱ 1600ms

Step 3:Store in N

Key Sequence:

Before Key Press:

360

After Key Press:

N=360.00

⏱ 1000ms

Step 4:Input I/Y = 0.375

Key Sequence:

0DECIMAL375

Before Key Press:

N=360.00

After Key Press:

0.375

⏱ 2000ms

Step 5:Store in I/Y

Key Sequence:

I/Y

Before Key Press:

0.375

After Key Press:

I/Y=0.38

⏱ 1000ms

Step 6:Input PV = 300000

Key Sequence:

300000

Before Key Press:

I/Y=0.38

After Key Press:

300000

⏱ 2200ms

Step 7:Store in PV

Key Sequence:

Before Key Press:

300000

After Key Press:

PV=300000.00

⏱ 1000ms

Step 8:Input PMT = 0

Key Sequence:

Before Key Press:

PV=300000.00

After Key Press:

⏱ 1200ms

Step 9:Store in PMT

Key Sequence:

PMT

Before Key Press:

After Key Press:

PMT=0.00

⏱ 1000ms

Step 10:Input FV = 0

Key Sequence:

Before Key Press:

PMT=0.00

After Key Press:

⏱ 1200ms

Step 11:Store in FV

Key Sequence:

Before Key Press:

After Key Press:

FV=0.00

⏱ 1000ms

Step 12:Compute PMT

Key Sequence:

CPTPMT

Before Key Press:

FV=0.00

After Key Press:

PMT=-1520.06

⏱ 1500ms

Step 13:Open Amortization Worksheet

Key Sequence:

2ndPV

Before Key Press:

PMT=-1520.06

After Key Press:

P1= 1.00

⏱ 1000ms

Step 14:Input P1 = 2

Key Sequence:

Before Key Press:

P1= 1.00

After Key Press:

⏱ 1200ms

Step 15:Enter P1

Key Sequence:

ENTER

Before Key Press:

After Key Press:

P1= 2.00

⏱ 1000ms

Step 16:Move to P2

Key Sequence:

DOWN

Before Key Press:

P1= 2.00

After Key Press:

P2= 2.00

⏱ 800ms

Step 17:Accept P2 = 2

Key Sequence:

ENTER

Before Key Press:

P2= 2.00

After Key Press:

P2= 2.00

⏱ 1000ms

Step 18:Move to BAL

Key Sequence:

DOWN

Before Key Press:

P2= 2.00

After Key Press:

BAL=299208.40

⏱ 800ms

Step 19:Move to PRN

Key Sequence:

DOWN

Before Key Press:

BAL=299208.40

After Key Press:

PRN=-396.54

⏱ 800ms

Step 20:Move to INT

Key Sequence:

DOWN

Before Key Press:

PRN=-396.54

After Key Press:

INT=-1123.52

⏱ 800ms

Calculator Display

      0.00

Speed:← →

💡 Press Space to quickly pause/play

⚠️ Common Mistakes and Traps

1.Looking at P1=1 instead of P1=2
2.Confusing Principal (PRN) with Balance (BAL)
3.Sign conventions

(Expand the sections to view answers and common mistakes before printing.)

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