Additional Examples; Loans; Simple Annual Interest - HP 17bll+ User Manual

Additional Examples

Loans

Simple Annual Interest

See appendix F for RPN keystrokes for this example .
Example: Simple Interest at an Annual Rate. Your good friend needs
a loan to start her latest enterprise and has requested that you lend her
$450 for 60 days. You lend her the money at 7% simple annual interest,
to be calculated on a 365-day basis. How much interest will she owe
you in 60 days, and what is the total amount owed?
v
Keys:
450 * 7 %
60 365
* /
+
450
=
A Solver Equation for Simple Annual Interest:

DEBT = the total owed at the end of the loan period.
LOAN = the original amount (principal) lent.
I% = the annual interest rate as a percent.
DAYS = the number of days in the loan.
190 14: Additional Examples
The interest is: (7% of $450)
Display:
 



60 days
×
365 days
Description:
Annual interest.
Actual interest for 60
days.
Add principal to get total
debt
14