HP HP-18C - Clearing the TVM Variables; Loan Calculations

Some time value of money calculations require that certain values be
set to O. For example, FV must be set to 0 when you are calculating
the periodic payment (PMT) required to fully pay back a loan. There
are two
ways to set a value to 0:
• Before storing any values, press .1 CLEAR ALL 1 to clear all the TVM
variables .
• Store
0; for example, pressing 0 .. sets FV to O.
Clearing the TVM Variables
The HP -18C retains the values stored in the TVM built-in variables
until they are changed by storing or calculating a new value, or
cleared by pressing .1 CLEAR ALL I. Clearing variables sets them equal
to O.
When the HP-18C is displaying the primary TVM menu, pressing
.1 CLEAR ALL 1 clears N, 1% YR, PV, PM!, and FV. When the secondary
(OTHER) menu is displayed, pressing .1 CLEAR ALL 1 sets the conditions
12 PMTS /YR: END MODE.
Loan Calculations
The following three examples illustrate several common loan
calculations.
Example: A car loan. Part 1.
You are financing the purchase of a
new car with a 3-year loan at 10.5% annual interest, compounded
monthly. The purchase price of the car is $7,250. Your down payment
is $1,500. What are your monthly payments? (Assume payments start
one month after purchase-in other words, at the end of the first
period .)
60 4: Time Value of Money