This solution requires four steps:
Calculate the present value of the 47 monthly payments: (4 × 12) - 1 = 47.
2. Add the value of the additional advance payment.
3. Find the present value of the buy option.
4. Sum the values calculated in steps 2 and 3.
Find the present value of the monthly payments.
Set to Begin mode. Press
Table 6-13 Calculating the present value
Add the additional advance payment to PV. Store the answer.
Table 6-14 Adding the advance payment
Find the present value of the buy option.
Table 6-15 Calculating the present value of the last cash flow
if BEGIN annunciator is not displayed.
Sets payments per year.
Stores number of payments.
Stores monthly payment.
Stores FV for Step 1.
Stores interest rate.
Calculates the present value of
47 monthly payments.
Adds additional advance.
Stores result in M register.
Stores month when buy option
Time Value of Money Calculations