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HP 10bII - Loans and Mortgages

HP 10bII
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98 8: Additional Examples
Loans and Mortgages
Simple Annual Interest
Example. <RXUJRRGIULHQGQHHGVDORDQWRVWDUWKLVODWHVWHQWHUSULVHDQG
KDVDVNHG\RXWROHQGKLPIRUGD\V<RXOHQGKLPWKHPRQH\DW
VLPSOHDQQXDOLQWHUHVWWREHFDOFXODWHGRQDGD\EDVLV+RZ
PXFKLQWHUHVWZLOOKHRZH\RXLQGD\VDQGZKDWLVWKHWRWDODPRXQW
RZHG"
7KLVHTXDWLRQLVXVHGIRUFDOFXODWLQJVLPSOHDQQXDOLQWHUHVWXVLQJD
GD\\HDU
,17(5(67
Continuous Compounding
7KHHTXDWLRQIRUFDOFXODWLQJDQHIIHFWLYHUDWHIRUFRQWLQXRXV
FRPSRXQGLQJLV
7RVROYHDFRQWLQXRXVFRPSRXQGLQJSUREOHPFRPSOHWHWKHVHVWHSV
 &RPSXWHWKHDQQXDOHIIHFWLYHUDWHXVLQJWKHDERYHHTXDWLRQ
 (LWKHUXVHWKLVHIIHFWLYHUDWHLQ\RXUFDOFXODWLRQVZLWKDQDQQXDO
SHULRG3<5 RUFRQYHUWWKLVUDWHVRWKDWLWDSSOLHVWR\RXU
SD\PHQWSHULRG,QWKHIROORZLQJH[DPSOH3<5 VR\RXKDYH
WRFDOFXODWHDQHZ120XVLQJWKHLQWHUHVWUDWHFRQYHUVLRQ
DSSOLFDWLRQZLWK3<5HTXDOWR
Keys: Display: Description:
"
0.10
6WRUHVLQWHUHVW
"d
7.40
&DOFXODWHVLQWHUHVWRZHG
a
457.40
&DOFXODWHVWRWDORZHG
/2$1$02817 ,17(5(67
×
7(502)/2$1,1'$<6
×
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120
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10B.book Page 98 Wednesday, June 21, 2000 5:19 PM

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