Variables Used:

NThe number of compounding periods.

IThe 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%.)

BThe initial balance of loan or savings account.

PThe periodic payment.

FThe 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–month) 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: (In RPN mode)

8()

(Øas needed ) 

P  value

   

 value

  value

Description:

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.

17-4Miscellaneous Programs and Equations