Q® 12dntli](e)0(if necessary) – HP 48g Graphing Calculator User Manual
Page 223
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Example:
Otto Tailfin is financing the purchase of a car with
a 3-year loan at 10.5% annual interest, compounded
monthly. The purchase price of the car is $11,250, and his
down payment is $2500. What are his monthly payments?
What is the largest loan Otto can afford if his maximum
monthly payment is $225? (Assume that payments start
at the end of the first period.)
Pl/=11,250-2,500
A
FV=
0
l%YR =
10.5
« = 3
X
12
PYR
= 12; End mode
5|
^
^
I 35
^ 36
^
PMF=?
18
Step 1:
Open the Finance Solver, and make sure there are 12
payments/year (monthlj^ payments) and that payments are
made at the end of each compounding period.
(7^(SOLVE)fAl OK
Q® 12dNTlI](E)0(if
necessary)
^»TIME
VALUE UF MDNEV
N:
0
|:;YR: 0
PM:
0.
00
PMT 0.
00
P/VR:
1?
FV:
0.
00
CHDDSE HHEH PflVMENTS ARE MODE
HIBIIIIHHTITIiTqwiMBMW
Step 2:
Enter the known TVM variables. Make sure to set the FV
to 0 because the loan is fully paid after 3 years (3 x 12
payments).
36
(ENTER
1
10.5
(ENTER)
(NXT)
CHLC
11250
(ENTER)
2500
0
O K
(EHD® ®
0
(ENTER)
TIME VALUE DF MONEY i
N:
36
I^YR:
10.5
PV: 8,750.00
PMT:0,00
f / m 12
FV: 0,00
H551
CHUDSE MHEH PflYMENTi JBE MADE
BBHBIIIHniliHBBIIIliipBWHiiliiaBBM
Solving Equations 18-17