Time Value of Money Calculations
64
Part 3
If interest is 10.5%, what is the maximum you can spend on the car to lower your car payment
to 375.00?
Example: A Home Mortgage
You decide that the maximum monthly mortgage payment you can afford is 930.00. You can
make a 12,000 down payment, and annual interest rates are currently 7.5%. If you obtain a
30 year mortgage, what is the maximum purchase price you can afford?
Figure 8 Cash flow diagram (Calculate PV)
Table 6-3 Calculating the interest rate
Keys
Display
Description
1V:Ì
-372.53
Decreases payment from 422.53.
Ò
2.03
Calculates annual interest rate for
the reduced payment.
Table 6-4 Calculating the amount
Keys
Display
Description
J:7VÒ
10.50
Stores original interest rate.
DjVyÌ
-375.00
Stores desired payment.
Ï
11,537.59
Calculates amount of money to
finance.
1JV::4
13,037.59
Adds the down payment to the
amount financed for total price
of the car.
Summary of Contents for 10bII+
Page 1: ...i HP 10bII Financial Calculator User s Guide HP Part Number NW239 90001 Edition 1 May 2010 ...
Page 3: ...iii HP 10bII Financial Calculator ...
Page 30: ...At a Glance 22 ...
Page 144: ...Statistical Calculations 136 ...
Page 183: ...Warranty Regulatory and Contact Information 9 ...
Page 184: ...Warranty Regulatory and Contact Information 10 ...