Amount – Texas Instruments BA II PLUS User Manual

Page 41

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Time-Value-of-Money and Amortization Worksheets

37

Answer:

You can borrow $13,441.47 with a down payment of $1,658.53.

Example: Computing Regular Deposits for a
Specified Future Amount

You plan to open a savings account and deposit the same amount of
money at the beginning of each month. In 10 years, you want to have
$25,000 in the account.

How much should you deposit if the annual interest rate is 0.5% with
quarterly compounding?

Note:

Because

C/Y

(compounding periods per year) is automatically set

to equal

P/Y

(payments per year), you must change the

C/Y

value.

Answer:

You must make monthly deposits of $203.13.

Compute loan amount.

% .

PV=

13,441.47

Compute down payment

H

15,100

S N

-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

Set compounding periods to 4.

#

4

!

C/Y=

4.00

Set beginning-of-period
payments.

& ] & V

BGN

Return to standard-calculator
mode.

& U

0.00

Enter number of deposits using
payment multiplier.

10

& Z ,

N=

120.00

Enter interest rate.

.5

-

I/Y=

0.50

Enter future value.

25,000

0

FV=

25,000.00

Compute deposit amount.

% /

PMT=

-203.13

To

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Display

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