HP 17BIIPLUS - Page 8

hp calculators
HP 17bII+ Time-Value-Of-Money
shown as a negative, remember, from the borrower’s point of
view.
Solve for the loan amount by pressing ‘PV.’ The answer is the
borrower could get a loan of $225,461.35
The Keystrokes
1500
+/-
PMT
PV Answer: 225,461.35
To Clear or Not to Clear
After all our harping about the importance of clearing the
registers, you may be wondering why we recommended you
not clear the calculator when we figured this new loan amount.
Well, certainly, you could have. But then you would have had to
reinsert the same information as we had before into the N
and I%YR registers.
When you find yourself in this kind of a situation, you may
find it easier and less time consuming to keep the registers that
won’t be changed as they are and put new information in those
registers that are to be changed. The new loan payment of
$1,500. that we put in the ‘PMT’ register kicks out the
previous payment we had and takes its place.
Clear the calculator with ‘SK’ and ‘CLR DATA.’
One more problem: A buyer just financed the purchase of a car with a $25,000.
loan at 6% interest over five years. This car owner expects to
keep the car for three years. If that turns out to be true, how
much will the car owner still owe on the loan after three years?
Analysis/solution: This problem is asking us for the balance still owed on a loan
at a point during the loan term. Well, let’s first figure what the
loan payment is. If we do this from the car buyer’s point of
view, the keystrokes to compute the loan payment are:
25000
PV
6
I%YR
5
SK
N
PMT Answer: -483.32
Let’s now ask the calculator how much of the loan would be
left unpaid after three years of loan payments. We are asking
the calculator to look three years in the future for the loan
balance then. Tell the calculator this by pressing in the time
hp calculators - 8 - HP 17bII+ Time-Value-Of-Money