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334
uu
uu
uNumber of installments
Example Calculate the number of years it will take to repay a $60,000
loan borrowed at 5.5%, compounded monthly, with monthly
installments of $840.
In the set up screen, specify “End” for Payment and then press J.
Perform the following key operation from the input screen.
c
f.fw
gaaaaw(PV = 60,000)
-ieaw(PMT = –840)
aw(FV = 0)
bcw(Monthly installments)
(Monthly compounding)
1(
n)
uu
uu
uEffective interest rate
Example Calculate (to two decimal places) the effective interest rate
compounded monthly, on a 25-year $65,000 loan repaid with
$460 monthly installments.
In the set up screen, specify “End” for Payment, “Fix2” for Display, and then press
J.
Perform the following key operation from the input screen.
cf*bcw(Input n = 25 × 12.)
c
gfaaaw(PV = 65,000)
-egaw(PMT = –460)
aw(
FV = 0)
bcw(Monthly installments)
(Monthly compounding)
2(
I%)
19 - 3 Compound Interest Calculations
P.7
P.7
P.6
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