HP Prime Graphing NW280AAABA manual Getting Started with the Finance app

Models: Prime Graphing NW280AAABA

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18

Finance app

The Finance app enables you to solve time-value-of-money (TVM) and amortization problems. You can use the app to do compound interest calculations and to create amortization tables.

Compound interest is accumulative interest, that is, interest on interest already earned. The interest earned on a given principal is added to the principal at specified compounding periods, and then the combined amount earns interest at a certain rate. Financial calculations involving compound interest include savings accounts, mortgages, pension funds, leases, and annuities.

Getting Started with the Finance app

Suppose you finance the purchase of a car with a 5-year loan at 5.5% annual interest, compounded monthly. The purchase price of the car is $19,500, and the down payment is $3,000. First, what are the required monthly payments? Second, what is the largest loan you can afford if your maximum monthly payment is $300? Assume that the payments start at the end of the first period.

1.Start the Finance app. ISelect Finance

The app opens in the Numeric view.

2.In the N field, enter 5 s12 and press

E.

Notice that the result

of the calculation

(60)appears in the field. This is the

number of months over a five-year period.

Finance app

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Page 291
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HP Prime Graphing NW280AAABA manual Getting Started with the Finance app