17–18 Applications
82501F~1.DOC TI-83 international English Bob Fedorisko Revised: 10/26/05 1:49 PM Printed: 10/27/05 3:04
PM Page 18 of 20
You are a loan officer at a mortgage company, and you recently
closed on a 30-year home mortgage at 8 percent interest with
monthly payments of 800. The new home owners want to know
how much will be applied to the interest and how much will be
applied to the principal when they make the 240th payment 20
years from now.
1. Press z and set the fixed-decimal mode to
2 decimal
places. Set the other mode settings to the defaults.
2. Press y [
FINANCE] 1 to display the TVM Solver. Enter these
values.
Note: Enter a positive number (800) to show PMT as a cash
inflow. Payment values will be displayed as positive numbers on
the graph. Enter 0 for FV, since the future value of a loan is 0
once it is paid in full. Enter PMT: END, since payment is due at
the end of a period.
3. Move the cursor onto the PV= prompt, and then press Æ’
[
SOLVE]. The present value, or mortgage amount, of the
house is displayed at the
PV= prompt.
Computing and Graphing Mortgage Payments
Problem
Procedure
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