Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time. It is the allocation of a lump sum amount to different time periods,particularly for loans and other forms of finance, including related interest or other finance charges. The Amortization menu calculations are based on values stored in thefollowing TVM keys: [N], [I/YR], [PV], [PMT] and [P/YR]. To entercurrent data for the TVM keys, enter a number followed by the key forthe required item. On the HP 20b, to open the menu press the [Amort] key. Here is the overview map of HP 20b Amortization Menu.

Press [Amort] key - Opens the Amortization (amrt) menu starting with Nb Per=.

To reset the variables to their default values, from anywhere in the Amortization menu, press [Shift] [Reset]. With TVM displayed, press [INPUT].

Example Problem: You borrow $140,000.00 for 360 months at 10% interest from a credit union. Create an amortization schedule for the loan. How much interest did you pay for the first year? What is the balance of your loan after the first year?

HP 20b Solution: Below keystrokes uses the RPN as the active operating mode.

Next, use the [Amort] key and menu to provide the solution: