HP HP-18C - Page 64

3012 " N=36.£1£1
10 .5 _ I%YR=l£1.5£1
7250 G 1500
..
..
PV=5 .. 75£1. £1£1
PMT=-186.89
Stores the number of
payments.
Stores the annual interest
rate.
Stores
the amount of the
loan .
Calculates
the payment.
The negative value
means this is money paid
out.
Part 2: To calculate the interest rate that reduces the payment by
$10:
[B10 "
P~1T=-l 76.89
I%YR=6.75
Stores the reduced pay-
ment amount .
Calculates
the annual in-
terest rate.
Example: A home mortgage. After careful consideration of your
personal finances, you've decided that the maximum monthly mort-
gage 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?
Figure 4·5. A Home Mortgage
PV=?
PMT=630
I%YR=11 .5
N=30x 12
#P/Y=12
62 4: Time Value of Money
1 359 1 360 1