HP 33s - Manual (Page 285)

Miscellaneous Programs and Equations 17–3
SOLVE instructions:
1. If your first TVM calculation is to solve for interest rate, I, press 1 I I.
2. Press | H . If necessary, press ™ or š to scroll through the
equation list until you come to the TVM equation.
3. Do one of the following five operations:
a. Press  N to calculate the number of compounding periods.
b. Press  I to calculate periodic interest.
For monthly payments, the result returned for I is the monthly interest rate,
i
; press 12 z to see the annual interest rate.
c. Press  B to calculate initial balance of a loan or savings account.
d. Press  P to calculate periodic payment.
e. Press  F to calculate future value or balance of a loan.
4. Key in the values of the four known variables as they are prompted for; press
g after each value.
5. When you press the last g , the value of the unknown variable is calculated
and displayed.
6. To calculate a new variable, or recalculate the same variable using different
data, go back to step 2.
SOLVE works effectively in this application without initial guesses.
Variables Used:
N The number of compounding periods.
I The periodic interest rate as a percentage. (For example, if the
annual
interest rate is 15% and there are 12 payments per year,
the periodic interest rate, i, is 15 ÷12=1.25%.)
B The initial balance of loan or savings account.
P The periodic payment.
F The future value of a savings account or balance of a loan.
Example:
Part 1. You are financing the purchase of a car with a 3–year (36–month) loan
at 10.5% annual interest compounded monthly. The purchase price of the car is
$7,250. Your down payment is $1,500.