B = 7,250 _ 1,500

I = 10.5% per year

N = 36 months

 

 

 

 

 

 

F = 0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

P = ?

 

 

 

Keys:

 

Display:

Description:

(In RPN mode)

{%} 2



H(šas

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needed )

 

P

@

 

value

10.5 ‘12 q

@

 

) 

g

@

 

value

36 g

@

 

value

0 g

@

 

value

7250 ‘1500 … @

 

8)

g

#

 

/

 

. ) 

Selects FIX 2 display format. Displays the leftmost part of the TVM equation.

Selects P; prompts for I.

Converts your annual interest rate input to the equivalent monthly rate.

Stores 0.88 in I; prompts for N.

Stores 36 in N; prompts for F.

Stores 0 in F; prompts for B.

Calculates B, the beginning loan balance.

Stores 5750 in B; calculates monthly payment, P.

The answer is negative since the loan has been viewed from the borrower's perspective. Money received by the borrower (the beginning balance) is positive, while money paid out is negative.

17–4Miscellaneous Programs and Equations