68 5: Time Value of Money
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
Keys: Display: Description:
Displays TVM menu.
@c
Clears history stack and
TVM variables.
@c
e
If needed: sets 12
payment periods per year;
End mode.
3
*
12
Fi
ures and stores number
of payments.
10.5 Stores annual interest rate.
7250
-
1500
Stores amount of the loan.
Calculates payment.
Negative value means
money to be paid out.
To calculate the interest rate that reduces the payment by $10, add 10
to reduce the negative PMT value.
+
10 Stores the reduced
payment amount.
Calculates the annual
interest rate.
Example: A Home Mortgage. After careful consideration of your
personal finances, you’ve decided that the maximum monthly mortgage
payment you can afford is $630. You can make a $12,000 down
payment, and annual interest rates are currently 11.5%. If you take out
a 30-year mortgage, what is the maximum purchase price you can
afford?
v
v
v
To Next Page
Loading...
