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Texas Instruments Calculator User Manual

Page 40

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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