HP 12c Platinum - Page 39

Lending 39
Example: A bulldozer worth $100,000 is being purchased in September. The first
payment is due one month later, and payments will continue over a period of 5 years. Due
to the weather, the machinery will not be used during the winter months, and the
purchaser does not wish to make payments during January, February, and March (months
4 thru 6). If the current interest rate is 14%, what is the monthly payment necessary to
amortize the loan?
12c platinum / 12C
RPN Keystrokes
12c platinum
ALG Keystrokes
Display Comments
g gÂ
fCLEARG fCLEARG
3n 3n
3.00
Number of payments made
before a group of payments is
skipped.
14gC 14gC
1.17
Monthly interest rate.
1PMÞ$ 1PMÞ$
12:n-n 12-:nn
0PM?0 0PM?0
-3.37
FV of 3 monthly unit PMTs.
:n3-n :n-3n
1P0$M 1P0$M
?+0 ?+0
-6.18
FV of 6 monthly unit PMTs.
0P12n 0P12n
100$M 100$M
:$+Þ +:$³Þ
fCLEARG¼ fCLEARG¼
14.93
Effective annual interest rate
5n100000$ 5n100000$
P:0z Pz:0³
3,119.89
Monthly payment in arrears.