HP 10B - Manual (Page 110)

(Ш
шв шшт
514.82
19.80
Calculates number of
biweekly payments.
Displays years required
to pay off loan.
Part 3.
What if you had monthly payments as in part 1, but chose a
15-year term? What would your new payment be? What would be the
total mtcrest paid on the contract?
Keys:
12 |j
151 П; 1 Ш
® ШШЕИ +1
ШШ(РУ)Е)
Display:
12.00
180.00
-8.446.53
-1.520,374.70
-785,374.70
Description:
Sets payments per year.
Stores new term.
Calculates payment for
shorter term.
Calculates total paid.
Displays total interest
paid on contract.
Savings
Saving for College Costs
Suppose you start saving now to accommodate a future series of cash
outflows. An example of this is saving money for college. To determine
how much you need to save each period, you must know when you’ll need
the money, how much you’ll need, and at what interest rate you can invest
your deposits.
Example.
Your oldest daughter will attend college in
12
years and you
arc starling a fund for her education. She will need $15,000 at the be^n-
ning of each year for four years. The fund earns 9% annual interest, com­
pounded monthly, and you plan to make monthly deposits, starting at the
end of the current month. The deposits cease when she begins college.
How much do you need to deposit each month?
8: Additional Examploa 107