Variables Used:

NThe number of compounding periods.

I

The periodic interest rate as a percentage. (For example, if

 

the annual interest rate is 15% and there are 12 payments

 

per year, the periodic interest rate, i, is 1512=1.25%.)

B

The initial balance of loan or savings account.

P

The periodic payment.

F

The future value of a savings account or balance of a loan.

Example:

Part 1. You are financing the purchase of a car with a 3–year (36–montld) loan at 10.5% annual interest compounded monthly. The purchase price of the car is $7,250. Your down payment is $1,500.

B = 7,250 _ 1,500

I = 10.5% per year

N = 36 months

F = 0

P = ?

 

 

Keys:

Display:

Description:

zž{%} 

 

Selects FIX 2 display format.

2

 

 

{G( zRºº1.1-Displays the leftmost part of the

˜as needed )

 

TVM equation.

{œP

@value

Selects P; prompts for I.

10.5 š12

@) 

Converts your annual interest rate

p

 

input to the equivalent monthly

 

 

rate.

f

@value

Stores 0.88 in I; prompts for N.

17–4 Miscellaneous Programs and Equations

File name 32sii-Manual-E-0424

 

Printed Date : 2003/4/24

Size : 17.7 x 25.2 cm