31
4
Procedure Key operation Display
Set all the variables to
default values.
.
b
000
Set to annuity due
(BGN is displayed).
.
"
000
Set the number of pay-
ments per year to 12.
.
w
12
Q
P/Y=
1200
The number of compounding periods per year is automatically set to
12. Press
s
to exit the P/Y and C/Y settings.
Enter the total number
of payments.
s
34
N
34
~N
3400
Enter payment.
,
200
u
(-
2
——)~PMt
-
20000
Enter the annual inter-
est rate.
18
f
18
~I/Y
1800
Enter the future value.
,
1500
t
(-
15
——)~FV
-150000
Calculate the present
value.
@
PV=
627995
Answer: $6,279.95 should be charged for the machine.
Calculating down payment and amount to
borrow
You wish to buy a house for $180,000. The fi nance company
charges a 5.5% APR, compounded monthly, on a 25-year loan.
If you can afford a monthly payment of $900, how much can you
borrow? How much do you need for a down payment?
N = 12 × 25 years = 300
......
I/Y = 5.5%
PV = ?
FV = 0
PMT = –$900
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