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Loan Galculations
The
following
examples
illustrate common loan calculations. Loan
cal-
culations typically use End mode. For amortization of loan payments,
see
page
130.
Erample: A
Gar
Loan.
You are
financi.g
the purchase
of
a car
with
a
3-year loan
at
10.5% annual interest, compounded monthly. The
purchase
price
of the
car
is
$7,250. Your down payment
is
$1,500.
What are your monthly
payments? (Assume
payments start
one
month after purchase-in other words, at the
end
of
the first period.)
Also, what interest rate would reduce your monthly puyment by
$10?
PV:7,250-1,500
FV:0
l"/"YR:10.5
N- 3x
12
P/YR:12;
End
mode
\-,
\,/
\-,
v
\./
\-,
\-,
\-,
Keys:
It
rwtl
It
MopES-l
ffi
2
[ tNPUr
I
t@
ffi
l@
l-ffit
Display:
I? PrYR
EHD
1'l0BE
Description:
Enters
TVM
application.
Sets
display to two
deci-
mal
places.
Optional;
clears
TVM
variables.
If
necessary: sets
12 pay-
ment periods per
year;
End
mode.
PMT:?
6: Time
Value
of
toney
123
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