HP HP-11C User Manual

Section 10: Applications Programs 193
Example 4: This program may also be used to calculate
accumulated interest/remaining balance for loans. The accumu-
lated interest between two points in time, n; and n,, is just the total
payments made in that period less the principal reduction in that
period. The principal reduction is the difference of the remaining
balances for the two points in time.
For a 360 month, $50,000 loan at a 14% annual interest rate, find
the remaining balance after the 24th payment and the accrued
interest for payments 13-24 (between the 12th and 24th payments).
First we must calculate the payment on the loan:
Keystrokes Display
CLEAR
360 360.00 n
14 120RA 1.17 i
1.00 Ordinary annuity.
50000 -50,000.00 PV
[0)[R7S) 592.44 PMT
The remaining balance at month 24 is:
24 [B](E]J(R/S] 49,749.56 FV at month 24.
Store this remaining balance and calculate the remaining balance
at month 12:
9
12 (B](EJ(R/S] 49,883.48 FV at month 12.
The principal reduction between payments 12 and 24 is:
99 133.92
The accrued interest is 12 payments less the principal reduction:
[RCL]4 12 7.109.23 Total paid out.
B 6,975.31 Accrued interest.
Example 5: A third party leasing firm is considering the
purchase of a minicomputer priced at $63,000 and intends to
achieve a 13% annual yield by leasing the computer to a customer
for a 5-year period. Ownership is retained by the leasing firm, and
at the end of the lease they expect to be able to sell the equipment
for at least $10,000. (Since lease payments occur at the start of each

HP HP-11C Specifications

General

Brand	HP
Model	HP-11C
Category	Calculator
Language	English