31
4
Pr
ocedure
K
e
y
operation
Displa
y
Set all the v
a
riab
les to
def
ault v
alues
.
.
b
000
Set to ann
uity due
(
BGN
is displa
y
ed).
.
"
000
Set the n
umber of pa
y-
ments per y
ear to 12.
.
w
12
Q
P/Y=
1200
The n
umber of compounding per
iods per y
ear is automatically set to
12.
Press
s
to e
xit the P/Y and C/Y settings
.
Enter the total n
umber
of pa
yments
.
s
34
N
34~N
3400
Enter pa
yment.
,
200
u
(-2——)~PMT
-20000
Enter the ann
ual inter-
est r
ate
.
18
f
18~I/Y
1800
Enter the future v
alue
.
,
1500
T
(-15——)~FV
-150000
Calculate the present
v
alue
.
@
v
PV=
627995
Ans
wer:
$6,279.95 should be charged f
or the machine
.
Calculating do
wn pa
yment and amount to
borr
o
w
Y
ou wish to b
u
y a house f
or $180,000.
The fi
nance compan
y
charges a 5.5% APR, compounded monthly
, on a 25-y
ear loan.
If y
ou can aff
ord a monthly pa
yment of $900, ho
w m
uch can y
ou
borro
w? Ho
w m
uch do y
ou need f
or a do
wn pa
yment?
N = 12
×
25 y
ears = 300
......
I/Y = 5.5%
PV = ?
FV = 0
PMT = –$900
3 Financial FunctionsCurrent.indd 31
06.7.10 8:38:24 PM