Canon Financial Manager Instructions Manual page 20

Calculating interest Rate!;\ (!Example 4)
If you borrow $5,000 and repay the loan over
a twenty-year period in equal monthly pay-
ments of $45, what is the annual interest rate
on the loan? What
WOLIId
the interest rate be
monthly payments were $50 or $55?
PV i PMT N
5000
? 45 20X '12
5000 ? 50 20X
12
5000 ? 55
20X 12
38
Operation
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558
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0128
Display Comments
LOAN
Set tile mode at
LOAN
E~~D LOAN
Set tile mode at
END
0.
Clear the data
memories
Input the present
5000.
value
45.
Input the amount
of payment
240.
Input the number
of periods
0. 7503550 59 Interest rate
9.004260713
Annual Interest
rate
50.
Input another
payment amount
0. 87700923 7 Interest rate
10.52411085
Annual interest
rate
55.
lnpu t another
payment amount
0. 99870 1496
Interest rate
II. 98441796
Annual 1nterest
rate
39