Keys:

Display:

Description:

 

 

 

 

 

 

 

 

Displays TVM menu.

 

 

 

 

@c

   

Clears history stack and

 

 

 

 

 

 

 

 

 

TVM variables.

 

 

 

 

 

If needed: sets 12

 

 

 

 

@c

payment periods per year;

 

e

   

End mode.

v3 *12

Figures and stores number

 

 

 



of payments.

 

 

 

 

 

10.5

 



Stores annual interest rate.

v7250 -1500

Stores amount of the loan.





Calculates payment.

 

 

Negative value means

 

 

money to be paid out.

To calculate the interest rate that reduces the payment by $10, add 10 to reduce the negative PMT value.

v+10



Stores the reduced

 

 

 

 

payment amount.

 

 

 

Calculates the annual

 

 



 

 

 

 

interest rate.

Example: A Home Mortgage. After careful consideration of your personal finances, you’ve decided that the maximum monthly mortgage payment you can afford is $630. You can make a $12,000 down payment, and annual interest rates are currently 11.5%. If you take out a 30-year mortgage, what is the maximum purchase price you can afford?

68 5: Time Value of Money

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