Texas Instruments Calculator Example: Computing Amount to Borrow and Down Payment

36 Time-Value-of-Money and Amortization Worksheets
Answer: Depositing $200 at the beginning of each month for 20 years
results in a future amount of $111,438.31.
Example: Computing Amount to Borrow and
Down Payment
You consider buying a car for $15,100. The finance company charges
7.5% APR compounded monthly on a 48-month loan. If you can afford a
monthly payment of $325, how much can you borrow? How much do
you need for a down payment?
Enter number of payments
using payment multiplier.
20 & Z , N= 240.00
Enter interest rate. 7.5 -I/Y= 7.50
Enter amount of payment. 200 S / PMT= -200.00
Compute future value. % 0 FV= 111,438.31
To Press Display
Set all variables to defaults. & } ! RST 0.00
Set payments per year to 12. & [ 12
!P/Y= 12.00
Return to standard-calculator
mode
& U 0.00
Enter number of payments using
payment multiplier.
4 & Z , N= 48.00
Enter interest rate. 7.5 -I/Y= 7.50
Enter payment. 325 S / PMT= -325.00
To Press Display