# Example: computing other monthly payments – Texas Instruments BA II PLUS User 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.

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

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