Texas Instruments BA II PLUS - Manual (Page 38)

34 Time-Value-of-Money and Amortization Worksheets
The total value of the machine is the present value of the residual value
plus the present value of the lease payments.
Answer: Peach Bright should pay your company $40,573.18 for the
machine.
Example: Computing Other Monthly Payments
If you finance the purchase of a new desk and chair for $525 at 20% APR
compounded monthly for two years, how much is the monthly payment?
To Press Display
Set all variables to defaults. & } ! RST 0.00
Set beginning-of-period
payments. & ] & V BGN
Return to standard-calculator
mode. & U 0.00
Enter number of payments. 46 , N= 46.00 
Calculate and enter periodic
interest rate. 22 6 12 N - I/Y= 1.83 
Enter residual value of asset. 6500 S 0 FV= -6,500.00 
Compute residual present value. % . PV= 2,818.22 
Enter lease payment amount. 1200 S / PMT= -1,200.00 
Compute present value of lease
payments. % . PV= 40,573.18 
To Press Display
Set all variables to defaults. & } ! RST 0.00
Set payments per year to 12. & [ 12 ! P/Y= 12.00 