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36 Time-Value-of-Money and Amortization Worksheets
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?
Answer: You can borrow $13,441.47 with a down payment of $1,658.53.
To Press Display
Set all variables to defaults. &}
!
RST
0.00
Set payments per year to 12. &[12
!
P/Y=
12.00
1
Return to standard-calculator
mode
&U
0.00
Enter number of payments using
payment multiplier.
4 &Z,
N=
48.00
1
Enter interest rate.
7.5 -
I/Y=
7.50
1
Enter payment. 325 S/
PMT=
-325.00
1
Compute loan amount.
C .
PV=
13,441.47 *
Compute down payment H 15,100
SN
-1,658.53
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