Computing And Graphing Mortgage Payments - Texas Instruments TI-84 Plus Manual Book

Computing and Graphing Mortgage Payments

Problem
You are a loan officer at a mortgage company, and you recently closed
on a 30-year home mortgage at 8 percent interest with monthly
payments of 800. The new home owners want to know how much will be
applied to the interest and how much will be applied to the principal
when they make the 240th payment 20 years from now.
Procedure
Press z and set the fixed-decimal mode to
1.
the other mode settings to the defaults.
Press Œ Í Í to display the
2.
Note:
Enter a positive number (
Payment values will be displayed as positive numbers on the graph.
Enter for
0
full. Enter
PMT: END
3. Move the cursor onto the
The present value, or mortgage amount, of the house is displayed at
the prompt.
PV=
Now compare the graph of the amount of interest with the graph of the
amount of principal for each payment.
Press z. Set
4.
Press o. Turn off all functions and stat plots. Enter these equations
5.
and set the graph styles as shown.
Activities
, since the future value of a loan is 0 once it is paid in
FV
, since payment is due at the end of a period.
PV=
and
Par Simul
TVM Solver
) to show
800
prompt, and then press ƒ \.
.
decimal places. Set
2
. Enter these values.
as a cash inflow.
PMT
93