HP 10B - Manual (Page 107)

Automobile Loan
Example.
You arc buying a new $14,000.00 sedan. Your down payment
is $1,500 and you arc going to finance the remaining $12,500. The car
dealer is ofTcring two choices for financing:
■ A 3-ycar loan with an annual interest rate of 3.5%.
■ A 3-year loan with an annual interest rate of 9.5% and a $1,000.00
rebate.
With which choice do you pay less for the car?
Set to End mode. Press BlBEt^EN^ if BEGIN annunciator is displayed.
Calculate the first option;
Keys:
12
36 Щ]
12500 (PV)
0
3.5
(x] ìrc D ( n ] 0
Calculate (he second option;
Keys:
11500 (pg
9.5 iiTŸRl
(PMTJ
QQi
(Ш0
Display: Description:
12.00 Sets payments per year.
Stores known values.
0.00
3.50 Stores first interest rate.
-366.28 Calculates payment.
-13,185.94
Calculates total interest
and principal.
tion:
Display: Description:
11.500.00 Stores loan amount with
rebate.
9.50 Stores second interest
rale.
-368.38
Calculates payment.
-13,261.64
Calculates total interest
and principal.
The first option costs slightly less.
104 8: Additional Examples