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Chapter 9
Financial Features
The financial calculation features include capabilities for compound interest calculations.
Press @ g .
The financial menu screen will appear.
• Specifies the TVM-SOLVER mode.
• Selects a financial calculation function
• Specifies payment due (to pay at the beginning or end of period)
• Determines individual settings (in TVM-SOLVER mode)
1. Try it! 1
You plan to purchase a house for a price of
$300,000. The down payment is $100,000.
Calculate the monthly payments for a 30-
year loan at an annual interest rate of 5%
for the remaining $200,000.
Draw a cash
1. Draw the following cash flow diagram to simplify the problem.
flow diagram on
paper
• A horizontal line indicates a time flow (left to right) divided into
even sections — months in this case. Each section indicates a
compound period and the total number of sections indicates the
total number of periods for payment.
+
(
)
Present Value (PV) = 300,000
= 200,000
Cash flow
1
2
3
–
(
)
–
100,000
I = 5%
Future Value (FV) = 0
Time flow
358
359
PMT = ?
×
N = 12
30
= 360
185
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