User Manual

2: TVM and Amortization Worksheets 49

Monthly Payments

You are planning to purchase a new small desk and chair set

that is sale priced at $525. You can finance your purchase at

20% APR, compounded monthly, for two years. How much is

the monthly payment?

PV = $525 FV = $0

PMT = ? PMT = ? PMT = ?

. . .

0 1 23 N = 24

I/Y = 20 ÷ 12

Example: Monthly Payments

Procedure Keystrokes Display

Set all variables to defaults.

}

RST 0.00

Enter number of payments

using payment multiplier.

N= 24.00



Enter interest rate.

I/Y= 20.00



Enter loan amount.

525

PV= -525.00



Compute payment.

PMT= 26.72



Your monthly payment is $26.72.