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Equal payments
P
P
P
p
F
oy
Y
;
i
234
5
Loan
'
-
o
'
Equal periods
B
Figure 7-2. Loan From a Lender's Point of View
Example: A Car Loan. Part 1: You are financing the purchase of a
car with a 3-year loan at 10.5% annual interest, compounded
monthly. The purchase price of the car is $7,250. Your down payment
is $1,500. What are your monthly payments? (Assume payments start
one month after purchase—in other words, at the end of the first
period.)
B = 7,250 — 1,500
A
1i2¢m¢35¢36¢
P =2
Keys:
Display:
Description:
Boisp] {Fx} 2
Sets display to two
decimal places.
B@(soLve] {P}
I ?value
Selects P, prompts for
L
10.5 [#] 12
1=0.88
Calculates and stores I,
F?value
prompts for F.
7: The Equation Library
111
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