Filter
Top Products
Activities 75
Y2=pB
2
(the area of the circle) is a horizontal asymptote to Y1. The
area of an N-sided regular polygon, with r as the distance from the
center to a vertex, approaches the area of a circle with radius r (pr
2
)
as N gets large.
Computing and Graphing Mortgage Payments
Problem
You are a loan officer at a mortgage company, and you recently closed
on a 30-year home mortgage at 8 percent interest with monthly
payments of 800. The new home owners want to know how much will be
applied to the interest and how much will be applied to the principal
when they make the 240th payment 20 years from now.
Procedure
1. Press z and set the fixed-decimal mode to 2 decimal places. Set
the other mode settings to the defaults.
2. Press Œ Í Í to display the TVM Solver. Enter these values.
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.