Finance app 131
11
Finance app
About the Finance app
The Finance app, or Finance Solver, provides you with
the ability to solve time-value-of-money (TVM) and
amortization problems. These problems can be used for
calculations involving compound interest applications as
well as amortization tables.
Compound interest is the process by which earned
interest on a given principal amount is added to the
principal at specified compounding periods, and then the
combined amount earns interest at a certain rate.
Financial calculations involving compound interest
include savings accounts, mortgages, pension funds,
leases, and annuities.
Getting Started with the Finance app
Suppose you finance the purchase of a car with a 5-year
loan at 5.5% annual interest, compounded monthly. The
purchase price of the car is $19,500, and the down
payment is $3,000. What are the required monthly
payments? What is the largest loan you can afford if your
maximum monthly payment is $300? Assume that the
payments start at the end of the first period.
1. Start the Finance app.
I select Finance
.
The Finance app opens in the Numeric view.
2. Select N, type 5 x 12 and
press
E.
To Next Page
Loading...
Need help?
General
