I%YR = the annual interest rate as a percent.
N= the total number of payments.
#ADV = the number of advance payments.
The following example assumes that you have entered the equation ADV, above, into the Solver. For instructions on entering Solver equations, see “Solving Your Own Equations,” on page 29.
Example: Leasing with Advance Payments. Equipment worth $750 is leased to you for 12 months. The equipment is assumed to have no salvage value at the end of the lease. You agree to make three payments at the time of closing. What is the monthly payment if the annual interest rate is 10%?
Select the ADV equation in the Solver.
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Savings
Value of a Fund with Regular Withdrawals
Example: A Fund with Regular Withdrawals. What are the balances after 1, 10, and 20 years of a fund that starts at $750,000, has $20,000 withdrawn at the beginning of each quarter, and earns 10% annual interest compounded monthly?
200 14: Additional Examples
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