Solving A Literal Equation Using The Equation Method (Amortization) - Sharp EL-9650 Handbook

Solving a Literal Equation Using the Equation Method
The Solver mode is used to solve one unknown variable by inputting known variables, by
three methods: Equation, Newton's, and Graphic. The Equation method is used when an
exact solution can be found by simple substitution.
Example
Solve an amortization formula. The solution from various values for known variables
can be easily found by giving values to the known variables using the Equation
method in the Solver mode.
The formula : P = L
1.
Find the monthly payment on a $15,000 car loan, made at 9% interest over four
years (48 months) using the Equation method.
2.
Save the formula as "AMORT".
3.
Find amount of loan possible at 7% interest over 60 months with a $300
payment, using the saved formula.
Before
There may be differences in the results of calculations and graph plotting depending on the setting.
Starting
Return all settings to the default value and delete all data.
Step & Key Operation
*Use either pen touch or cursor to operate.
1
1
Access the Solver feature.
-
2nd F SOLVER
1
2
Select the Equation method for
-
solving.
A
2nd F SOLVER
*
1
*
1
3
Enter the amortization formula.
-
=
2nd F SOLVER P
a /b
( 1 —
a /b
1 1
ALPHA
-
b ( )
a N
ALPHA
I 1
ALPHA
-
( )
a b 1
I
-N -1
1-(1+ )
P= monthly payment
12
L= loan amount
I / 12
L ALPHA
+
( 1
2 )
*
*
)
2
*
EL-9650/9600c Graphing Calculator
I= interest rate
N=number of months
Display
This screen will appear a few
seconds after "SOLVER" is dis-
played.
(Amortization)
Notes
3-1