Down Payment

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You consider buying a car for $15,100. The finance company charges

7.5% APR compounded monthly on a 48-month loan. If you can afford a

monthly payment of $325, how much can you borrow? How much do

you need for a down payment?

Enter number of payments

using payment multiplier.

20 & Z , N= 240.00

Enter interest rate. 7.5 - I/Y= 7.50

Enter amount of payment. 200 S / PMT= -200.00

Compute future value. % 0 FV= 111,438.31

To Press Display

Set all variables to defaults. & } ! RST 0.00

Set payments per year to 12. & [ 12

!

P/Y= 12.00

Return to standard-calculator

mode

& U 0.00

Enter number of payments using

payment multiplier.

4 & Z , N= 48.00

Enter interest rate. 7.5 - I/Y= 7.50

Enter payment. 325 S / PMT= -325.00

To Press Display

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

You consider buying a car for $15,100. The finance company charges

7.5% APR compounded monthly on a 48-month loan. If you can afford a

monthly payment of $325, how much can you borrow? How much do

you need for a down payment?

Enter number of payments

using payment multiplier.

20 & Z , N= 240.00

Enter interest rate. 7.5 - I/Y= 7.50

Enter amount of payment. 200 S / PMT= -200.00

Compute future value. % 0 FV= 111,438.31

To Press Display

Set all variables to defaults. & } ! RST 0.00

Set payments per year to 12. & [ 12

!

P/Y= 12.00

Return to standard-calculator

mode

& U 0.00

Enter number of payments using

payment multiplier.

4 & Z , N= 48.00

Enter interest rate. 7.5 - I/Y= 7.50

Enter payment. 325 S / PMT= -325.00

To Press Display

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