Example: A Home Mortgage. <RXGHFLGHWKDWWKHPD[LPXPPRQWKO\ PRUWJDJHSD\PHQW\RXFDQDIIRUGLV<RXFDQPDNHD GRZQSD\PHQWDQGDQQXDOLQWHUHVWUDWHVDUHFXUUHQWO\,I\RXREWDLQ D\HDUPRUWJDJHZKDWLVWKHPD[LPXPSXUFKDVHSULFH\RXFDQDIIRUG"

PV = ?

I/YR = 7.5%

N = 30 ￿12

P/YR = 12

1

2

3

4

. . .

356

357

358

359

360

 

PMT = -930.00

End Mode

6HWWR(QGPRGH3UHVV*OLIBEGINDQQXQFLDWRULVGLVSOD\HG

Keys: b

Display:

￿*U

12.00

 

360.00

/

 

 

0.00

.

 

￿￿(2

7.50

–930.00

￿

133,006.39

￿￿￿￿￿￿￿

145,006.39

Description:

6HWVSHULRGVSHU\HDU

6WRUHVWKHOHQJWKRIWKH PRUWJDJH ï 

3D\VPRUWJDJHRIILQ \HDUV

6WRUHVLQWHUHVWUDWH

6WRUHVGHVLUHGSD\ PHQW PRQH\SDLGRXW LVQHJDWLYH 

&DOFXODWHVWKHORDQ\RX FDQDIIRUGZLWKD SD\PHQW

$GGVGRZQ SD\PHQWIRUWKHWRWDO

SXUFKDVHSULFH

5: Time Value of Money Calculations 57

Page 57
Image 57
HP F1902-90001 manual SxufkdvhSulfh, PV = ? YR = 7.5% = 30 356 357 358 359 360 PMT = End Mode, 6HWVSHULRGVSHU\HDU