2: TVM and Amortization Worksheets 49
Monthly Payments
You are planning to purchase a new small desk and chair set
that is sale priced at $525. You can finance your purchase at
20% APR, compounded monthly, for two years. How much is
the monthly payment?
PV = $525 FV = $0
PMT = ? PMT = ? PMT = ?
. . .
0 1 23 N = 24
I/Y = 20 ÷ 12
Example: Monthly Payments
Procedure Keystrokes Display
Set all variables to defaults.
&
}
!
RST 0.00
Enter number of payments
using payment multiplier.
2
&
Z
,
N= 24.00
Enter interest rate.
20
-
I/Y= 20.00
Enter loan amount.
525
S
.
PV= -525.00
Compute payment.
%
/
PMT= 26.72
Your monthly payment is $26.72.
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