Misc Cards

Question 1

Serial payment vs fixed (or annuity) payment?

Answer 1

Serial: increases every year w/inflation (Think of it as compounded or compounding payments.)

Use FV & inflation adjusted return to adjust payments

Fixed/Annuity: level payments for duration of payments

Question 2

What is a loan amortization calculation?

Answer 2

It breaks down the amt of principle & interest

1. Solve for PMT
2. DOWNSHIFT + AMORT
3. =,=,= (Principal, Interest, Balance Due)

For a specific month, after solving for PMT you would enter:
Month # , INPUT
DOWNSHIFT + AMORT, =,=,=

For a range of months you would enter:
Beginning Month#, INPUT
Ending Month #
DOWNSHIFT + AMORT, =,=,=

Question 3

For which key/calc on 10Bii do you need to worry about begin/end mode?

Answer 3

PMTs for retirement & college (step 2 is in BEGIN mode b/c you need payment @ beginning)

Question 4

How do you calculate weighted average on the 10Bii?

Answer 4

1) Enter weights and price in pairs as follows: Value/INPUT, Weight/Sum Key
2) Downshift + 6