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Chapter 11
Financial Features
The financial calculation features include capabilities for compound interest calcula-
tions.
Press @ g.
The financial menu screen will appear.
• Specifies the TVM-SOLVER mode.
• Selects a financial calculation function
• Specifies payment due (to pay at the beginning or end of
period)
• Determines individual settings (in TVM-SOLVER mode)
1. Try it! 1
You plan to purchase a house for a price of
$300,000. The down payment is $100,000.
Calculate the monthly payments for a 30-
year loan at an annual interest rate of 5%
for the remaining $200,000.
•A horizontal line indicates a time flow (left to right) divided into
even sections — months in this case. Each section indicates a
compound period and the total number of sections indicates the
total number of periods for payment.
1. Draw the following cash flow diagram to simplify the problem.
Cash flow
Present Value (PV) = 300,000
–
100,000
= 200,000
Future Value (FV) = 0
N = 12
×
30
= 360
PMT = ?
Time flow
I = 5%
359358231
(
+
)
(
–
)
Draw a cash
flow diagram on
paper