Chapter 14: Applications
252
Getting Started: Financing a Car
Getting Started is a fast-paced introduction. Read the chapter for details.
You have found a car you would like to buy. You can afford payments of 250 per month for four
years. The car costs 9,000. Your bank offers an interest rate of 5%. What will your payments be?
Can you afford it?
2. Select from list of functions.
1. Press
z † ~ ~ ~ Í
to set the fixed-decimal
mode setting to
2
.
2. Press
Œ Í
to select
1:Finance
from the
APPLICATIONS
menu.
3. Press
Í
to select
1:TVM Solver
from the
CALC VARS
menu. The TVM Solver is displayed.
4. Enter the data:
N (number of payments)=
48
I% (interest rate)=
5
PV (present value)=
9000
FV (future value)=
0
P/Y (payments per year)=
12
C/Y (compounding periods per year)=
12
5. Select
PMT:END
, which indicates that payments are
due at the end of each period.
6. Move the cursor to PMT and press
ƒ \
. Can
you afford the payment?
