Chapter 17: Activities 324
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.
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: GPrn( 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
Tstep=12
Xmin=0
Xmax=360
Xscl=10
Ymin=0
Ymax=1000
Yscl=100
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