HP Prime Graphing NW280AAABA manual Cash flow diagrams

Models: Prime Graphing NW280AAABA

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The PV value is calculated as 15,705.85, this being the maximum you can borrow. Thus, with your $3,000 deposit, you can afford a car with

a price tag of up to $18,705.85.

Cash flow diagrams

TVM transactions can be represented in cash flow diagrams. A cash flow diagram is a time line divided into equal segments representing the compounding periods. Arrows represent the cash flows. These could be positive (upward arrows) or negative (downward arrows), depending on the point of view of the lender or borrower. The following cash flow diagram shows a loan from a borrower’s point of view:

Finance app

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Page 293
Image 293
HP Prime Graphing NW280AAABA manual Cash flow diagrams