Operation Manual

Chapter 17: Activities 323
Note: Enter a positive number (800) to show PMT as a cash inflow. Payment values will be
displayed as positive numbers on the graph. Enter
0 for FV, since the future value of a loan is 0 once
it is paid in full. Enter PMT: END, since payment is due at the end of a period.
3. Move the cursor onto the PV= prompt, and then press ƒ \. The present value, or mortgage
amount, of the house is displayed at the PV= prompt.
Now compare the graph of the amount of interest with the graph of the amount of principal for each
payment.
4. Press z. Set
Par and Simul.
5. Press o. Turn off all functions and stat plots. Enter these equations and set the graph styles as
shown.
Note: Use the Y- VARS shortcut menu ƒ a to locate Y1T and Y2T.
Note: G
Prn( and GInt( are located on the FINANCE menu (APPS 1:FINANCE).
6. Press p. Set these window variables.
Note: To increase the graph speed, change Tstep to 24.
7. Press r. After the graph is drawn, press 240 Í to move the trace cursor to T=240, which is
equivalent to 20 years of payments.
Tmin=1
Tmax=360
Tst e p=1 2
Xmin=0
Xmax=360
Xscl=10
Ymin=0
Ymax=1000
Yscl=100