Sharp EL-738 operation manual 3400, 150000, 627995, Calculating down payment and amount to borrow

Procedure	Key operation			Display
Set all the variables to	.b
default values.				000
Set to annuity due	."
(BGN is displayed).				000
Set the number of pay-	.w	12	Q	P/Y=
ments per year to 12.				1200

The number of compounding periods per year is automatically set to 12. Press sto exit the P/Y and C/Y settings.

Enter the total number	s		34	N	34~N
of payments.					3400
Enter payment.	,200 u				(-2——)~PMT
					-20000
Enter the annual inter-	18	f			18~I/Y
est rate.					1800
Enter the future value.	,1500 T				(-15——)~FV
					-150000
Calculate the present	@v				PV=
value.					627995

Answer: $6,279.95 should be charged for the machine.

4 Calculating down payment and amount to borrow

You wish to buy a house for $180,000. The finance company charges a 5.5% APR, compounded monthly, on a 25-year loan. If you can afford a monthly payment of $900, how much can you borrow? How much do you need for a down payment?

PV = ?

I/Y = 5.5%		FV = 0
	. . . . . .

PMT = –$900

N = 12 ⋅ 25 years = 300

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