In this video, the calculator is set to 1 payment per year. That's the way I instruct my students to leave their calculators. That way it works the same as Excel. If you prefer to set your calculator to 12 payments per year (the default setting) you would not divide the interest rate by 12, but everything else would be the same.
@@BBNutbeem Press 1, then press the orange shift key, them the PMT (p/yr) key. I always double check that it set correctly by then clicking the orange shift key and then the C key. Then the calculator will show now many p/yr (I just do this to confirm that the calculator actually reset to what I wanted).
6:50 Saved my life in Finance! I am using both Ti-84 Plus and HP 10bII+ to solve loans and payments and did not know how to find the balance on the second calculator. Your video was easy to follow and quick to the point.
Vance Lesseig in my many years of youtubing videos for help, this has by far been the best, easiest to understand and informative video. Thanks. Keep up the good work!
Great information, I took your Finance class a few semesters ago and needed a quick recap. Glad I found your channel. Keep'em coming and "Eat'em up, Cats!"
I'm typing it in exactly as you say and on the first one and I get -885.558437. I have no idea what I'm doing wrong. I've reset the calculator to ensure I don't have other numbers messing up the calculation.
So, can this exact calculation be used to calculate real-life scenarios? For example, say a friend borrowed money for a home buy and needs to pay all in 30 years with 5.5% interest rate (excluding insurance and tax fees) and would like to know how much balance is left in 15 years.
HAHAHAHAH holy shit I finished my 1hr test in 30 mins, my tutor kept insisting calculators wont work for amortisation but guess he was wrong. Cheers bruv
thanks for this video! when I try to do the second problem I put in 1 input then 12 input shift amort but the payment schedule is coming up as 12-12 instead of 1-12, do you know what I am doing wrong?
this method works if your calculator is set at 1 P/YR. the default is 12 P/YR. if you are set at the default with monthly compounding then you enter the annual rate of 4.9