Texas Instruments BA-20 Profit Manager User Manual - Page 38
Example: Computing Other Monthly Payments, Answer
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The total value of the machine is the present value of the residual value plus the present value of the lease payments. To Press Set all variables to defaults. & } ! Set beginning-of-period payments. &] &V Return to standard-calculator mode. & U Enter number of payments. 46 , Calculate and enter periodic interest rate. 22 6 12 N - Enter residual value of asset. 6500 S 0 Compute residual present value. % . Enter lease payment amount. 1200 S / Compute present value of lease % . payments. RST BGN Display 0.00 0.00 N= 46.00 I/Y= 1.83 FV= -6,500.00 PV= 2,818.22 PMT= -1,200.00 PV= 40,573.18 Answer: Peach Bright should pay your company $40,573.18 for the machine. Example: Computing Other Monthly Payments If you finance the purchase of a new desk and chair for $525 at 20% APR compounded monthly for two years, how much is the monthly payment? To Set all variables to defaults. Set payments per year to 12. Press & } ! & [ 12 ! RST P/Y= Display 0.00 12.00 34 Time-Value-of-Money and Amortization Worksheets