HP HP-15C - Page 40

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Section 1: Using [SOLVE j Effectively
Example: A leasing firm is considering the purchase of a
minicomputer for $63,000 and wants to achieve a 13% annual yield
by leasing the computer for a 5-year period. At the end of the lease
the firm expects to sell the computer for at least $10,000. What
monthly payment should the firm charge in order to achieve a 13%
yield? (Because the lease payments are due at the beginning of
each month, be sure to set flag 0 to specify beginning-of-period
payments.)
10,000
FV
PMT
t t t t t t
1 2 3
PV
-63,000
13
12
58 59 60
Keystrokes
|T| CLEAR [REG]
H[SF]0
5 [ENTER] 120 [A]
13 [ENTER] 12 BE
63000 [CHSlfcl
1 oooo [E
[D]|R/S|
Display
60.00
1.08
-63,000
10,000,
.00
00
1,300.16
Clears financial
variables.
Specifies beginning-of-
period payments.
Enters n = 5 X 12.
Enters i = 13/12.
Enters PV= -63,000.
Enters FV= 10,000.
Calculates PMT.
If the price of the computer increases to $70,000, what should the
payments be?
Keystrokes Display
70000 [CHS] fc] -70,000.00 Enters PV= -70,000.
[DirRTs] 1,457.73 Calculates PMT.