HP 113394 User Guide - Page 57

Section 3: Basic Financial Functions 57 Example 1: You're financing a new car purchase with a loan from an institution that requires 5.9% interest compounded monthly over the 4-year term of the loan. If you can make payments of $450 at the end of each month and your down payment will be $1,500, what is the maximum price you can pay for the car? (Assume the purchase date is one month prior to the date of the first payment.) Keystrokes (RPN mode) Display fCLEARG 4gA 48.00 Calculates and stores n. 5.9gC 450ÞP g $ 1500+ 0.49 Calculates and stores i. -450.00 Stores PMT (with minus sign for cash paid out). -450.00 Sets payment mode to End. 19,198.60 Maximum amount of loan. 20,698.60 Maximum purchase price. In ALG mode, press the keys listed for RPN mode but replace the last step above with the step below. Keystrokes (ALG mode) Display +1500} 20,698.60 Maximum purchase price. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 57 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm