68
5: Time Value of Money
Keys: Display:
Description:
"
]
"
Displays TVM menu.
@c
#$
5?@2
H<A
0EAH"
Clears history stack and
TVM variables.
.
@c
e
"
"
#$
5?@2
H<A
0EAH"
If needed: sets 12
payment periods per year;
End mode.
3
*
12
T
"
<8%'&(("
Figures and stores number
of payments.
10.5
U
;6@28#(&.("
Stores annual interest rate.
7250
-
1500
V
"
5O8.K-.(&(("
Stores amount of the loan.
W
50:8/#*'&*,"
Calculates payment.
Negative value means
money to be
paid out
.
To calculate the interest rate that reduces the payment by $10,
add
10
to reduce the negative
PMT
value.
+
10
W
50:8/#-'&*,"
Stores the reduced
payment amount.
U
;6@28'&-."
Calculates the annual
interest rate.
Example: A Home Mortgage.
After careful consideration of your
personal finances, you’ve decided that the maximum monthly mortgage
payment you can afford is $630. You can make a $12,000 down
payment, and annual interest rates are currently 11.5%. If you take out
a 30-year mortgage, what is the maximum purchase price you can
afford
?
v
v
v
