HP 17bII - 14: Additional Examples; Loans; Simple Annual Interest

190 14: Additional Examples
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
14
Additional Examples
Loans
Simple Annual Interest
See appendix F for RPN keystrokes for this example.
Example: Simple Interest at an Annual Rate. Your good friend needs
a loan to start her latest enterprise and has requested that you lend her
$450 for 60 days. You lend her the money at 7% simple annual interest,
to be calculated on a 365-day basis. How much interest will she owe
you in 60 days, and what is the total amount owed?
The interest is: (7% of $450)
×
60 days
365 days
Keys: Display: Description:
450
*
7
%
  Annual interest.
*
60
/
365
+


Actual interest for 60
days.
450
=
 Add principal to get total
debt
A Solver Equation for Simple Annual Interest:

DEBT = the total owed at the end of the loan period.
LOAN = the original amount (principal) lent.
I% = the annual interest rate as a percent.
DAYS = the number of days in the loan.
v