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32
Procedure Key operation Display
Set all the variables to
default values.
.
b
000
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of pay-
ments per year to 12.
.
w
12
Q
P/Y=
1200
The number of compounding periods per year is automatically set to 12.
Press
s
to exit the P/Y and C/Y settings.
Enter the total number
of payments.
s
25
.
<
N
ANS~N
30000
Enter payment.
,
900
u
(-9——)~PMT
-90000
Enter the annual inter-
est rate.
5.5
f
5.5~I/Y
550
Set the future value to
zero.
0
T
—~FV
000
Calculate the present
value.
@
v
PV=
14655892
Calculate the down
payment.
s
180000
-
f
v
=
18————-PV=
3344108
Answer: You can borrow $146,558.92 in total. The price of the
house is $180,000, so:
Down payment = $180,000 – present value
= $180,000 – $146,558.92
You need $33,441.08 for a down payment.