Amount To Borrow And Down Payment - Texas Instruments BA II PLUS User Manual

Amount to Borrow and Down Payment

You want to buy a car that sells for $5,100. The finance
company charges 13.51% APR, compounded monthly, on a
48-month loan. If you can afford a monthly payment of $125,
how much can you borrow? How much do you need for the
down payment?
Example: Loan Amount and Down Payment
Calculate the loan amount. Then subtract it from the cost of the
car to find the down payment.
PV = ?
0
Procedure
Set all variables to defaults.
Enter number of payments
using payment multiplier.
Enter monthly interest rate.
Enter payment.
Compute loan amount.
Calculate down payment.
To buy the car, you can borrow $4,615.73 and make a down
payment of $484.27.
52
$125
. . .
1
I/Y = 13.51 ÷ 12
Keystrokes
& } !
& Z ,
4
13.51
125
% .
H
$125
47
RST
N=
-
I/Y=
S /
PMT=
PV=
S N
5100
BA II PLUS™ Calculator
FV = $0
$125
N=48
Display
0.00
P
48.00
P
13.51
P
-125.00
Q
4,615.73
-484.27