HP 10bII+ Financial manual Jgvï, D7VÒ, PvÙ4, Jjvï, Automobile Loan

Table 13-13 Calculating the monthly payment amount

Keys	Display	Description
:É	0.00	Enters amount left to pay
		after 36 payments.
Ì	-157.03	Calculates the payment
		amount.

Automobile Loan

Example

You are buying a new 14,000.00 sedan. Your down payment is 1,500 and you are going to finance the remaining 12,500. The car dealer is offering two choices for financing:

•A 3-year loan with an annual interest rate of 3.5%.

•A 3-year loan with an annual interest rate of 9.5% and a 1,000.00 rebate.

With which choice do you pay less for the car?

Set to End mode. Press \¯if BEGIN annunciator is displayed.

Calculate the first option:

	Table 13-14		Calculating the annual interest rate of 3.5%
	Keys			Display	Description
	JG\Í			12.00	Sets payments per year.
	DSÙ			36.00	Stores known values.
	JGV::Ï			12,500.00	Stores loan amount.
:É				0.00
	D7VÒ			3.50	Stores first interest rate.
Ì				-366.28	Calculates payment.
	PvÙ4			-13,185.94	Calculates total interest and
					principal.
Calculate the second option:
		Table 13-15	Calculating the annual interest rate of 9.5%
		Keys		Display	Description
		JJV::Ï		11,500.00	Stores loan amount with rebate.

Additional Examples 145