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BA II Plus loan amortization: interest and principal for any year

Mortgage payments, interest and principal splits, and outstanding balances.

The keys

set up the loan in TVMN, I/Y, PV and FV, then [CPT] [PMT].
2NDAMORTOpens the amortisation worksheet.
P1ENTER↓P2ENTER↓The range of payments to report.
↓↓Scroll through BAL, PRN and INT for that range.

Worked example

A 100,000 loan over 30 years with monthly payments at 6% a year. Interest paid in year 1?

2NDCLR TVMStart clean, with P/Y = 1.
360N0.5I/Y100000PV0FVMonthly rate 6% ÷ 12 = 0.5%.
CPTPMTPMT = −599.55.
2NDAMORT1ENTER↓12ENTERPayments 1 to 12.
↓↓↓BAL = 98,771.99, PRN = −1,228.01, INT = −5,966.59.
Interest in year 1 = 5,966.59; principal repaid = 1,228.01

The trap

Keep P/Y = 1 and enter the monthly rate and number of months yourself. Mixing P/Y = 12 with an annual N is the commonest way to get a payment twelve times too small.

The terms behind it

  • Present valueWhat a future cash flow is worth today, found by discounting it at a rate that reflects its risk and timing.
  • AnnuityA series of equal cash flows at equal intervals.

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