Texas Instruments BA II PLUS User Manual page 78

Example: Compute Equivalent Monthly Payments
(continued from previous example)
Use the net present value (
as the present value (
equivalent even monthly payment that is equivalent to the
uneven cash flows.
Present value (PV) = NPV from Cash Flow worksheet
Payment amount (PMT) = ?
Procedure
Set beginning-of-period
payments.
Return to calculator mode.
Enter NPV
positive.
Enter interest per year.
Enter number of payments.
Compute payment.
At the required earnings rate of 10%, the present value of the
lease payments is $138,088.44. An even monthly payment of
$4,418.90 would result in the same present value.
72
NPV
) in the TVM worksheet to compute the
PV
Interest (I/Y) = 10%
Number of payments (N) = 36
as PV and make it
) from the Cash Flow worksheet
. . .
Keystrokes
& ]
& V
& U
J S .
0
-
10
,
36
% /
BA II PLUS™ Calculator
Display
BGN
0.00
P
PV= 138,088.44
P
I/Y= 10.00
P
N= 36.00
Q
PMT= -4,418.90