72 BA II PLUS™ Calculator
Example: Compute Equivalent Monthly Payments
(continued from previous example)
Use the net present value (
NPV
) from the Cash Flow worksheet
as the present value (
PV
) in the TVM worksheet to compute the
equivalent even monthly payment that is equivalent to the
uneven cash flows.
Present value (PV) = NPV from Cash Flow worksheet
Interest (I/Y) = 10%
Number of payments (N) = 36
. . .
Payment amount (PMT) = ?
Procedure Keystrokes Display
Set beginning-of-period
payments.
&
]
&
V
BGN
Return to calculator mode.
&
U
0.00
Enter
NPV
as
PV
and make it
positive.
J
0
S
.
PV= 138,088.44
Enter interest per year.
10
-
I/Y= 10.00
Enter number of payments.
36
,
N= 36.00
Compute payment.
%
/
PMT= -4,418.90
At the required earnings rate of 10%, the present value of the
lease payments is $138,088.44. An even monthly payment of
$4,418.90 would result in the same present value.
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