Applications; Annuities And Compound Amounts - HP -15C Advanced Functions Handbook

26 Section 1: Using | SOLVE | Effectively
Applications
The following applications illustrate how you can use | SOLVE j to
simplify a calculation that would normally be difficult—finding an
interest rate that can't be calculated directly. Other applications
that use the | SOLVE | function are given in sections 3 and 4.
Annuities and Compound Amounts
This program solves a variety of financial problems involving
money, time, and interest. For these problems, you normally know
the values of three or four of the following variables and need to
find the value of another:
The number of compounding periods. (For example, a 30
year loan with monthly payments has n =12 X 30 = 360.)
The interest rate per compounding period expressed as a
percent. (To calculate i, divide the annual percentage rate
by the number of compounding periods in a year. That is,
12% annual interest compounded monthly equals 1%
periodic interest.)
PV The present value of a series of future cash flows or the
initial cash flow.
PMT The periodic payment amount.
FV The future value. That is, the final cash flow (balloon
payment or remaining balance) or the compounded value
of a series of prior cash flows.