HP 10bII+ - Page 153

Additional Examples
145
Automobile Loan
Example
You are buying a new 14,000.00 sedan. Your down payment is 1,500 and you are going to
finance the remaining 12,500. The car dealer is offering two choices for financing:
• A 3-year loan with an annual interest rate of 3.5%.
• A 3-year loan with an annual interest rate of 9.5% and a 1,000.00 rebate.
With which choice do you pay less for the car?
Set to End mode. Press \¯ if BEGIN annunciator is displayed.
Calculate the first option:
Calculate the second option:
:É
0.00 Enters amount left to pay
after 36 payments.
Ì
-157.03 Calculates the payment
amount.
Table 13-13 Calculating the monthly payment amount
Keys Display Description
Table 13-14 Calculating the annual interest rate of 3.5%
Keys Display Description
JG\Í
12.00 Sets payments per year.
DSÙ
36.00 Stores known values.
JGV::Ï
12,500.00 Stores loan amount.
:É
0.00
D7VÒ
3.50 Stores first interest rate.
Ì
-366.28 Calculates payment.
PvÙ4
-13,185.94 Calculates total interest and
principal.
Table 13-15 Calculating the annual interest rate of 9.5%
Keys Display Description
JJV::Ï
11,500.00 Stores loan amount with rebate.