What is the future value of the loan in the previous problem if the interest is compounded monthly (all other conditions remain the same)?

Your calculator should now display a screen with these variables. I have written what each

variable stands for next to the variable. You calculator likely has numbers next to some of the

variables. This is okay. We will type over them when we need to solve a specific loan problem.

N Number of payments

I% Annual interest rate

PV Loan amount (Normally

entered as a POSITIVE

number in loan problems.)

PMT Monthly payment amount

(Usually entered as a

NEGATIVE number in loan

problems.)

FV Balance when loan is paid

off. (Usually 0 in a loan

problem.)

P/Y Number of payments per

year. (Usually 12 in a loan

problem.)

C/Y How often interest is

charged. (Usually 12 in a

loan problem)

Begin / End Choose Begin if you make a

loan payment the day you

take your loan. Otherwise

choose End. We will always

leave this on END.

Example: A new car is purchased and a $25,000 loan is taken. The loan is for 6 years (72

months) and the interest rate is 4.9% compounded monthly. What is the monthly payment?

Calculator steps: Hit APPS button then select Finance then select TVM solver.

We will solve most of the problems in this chapter from this screen. We need to know what

each variable represents. We will enter values for every variable except for the one we are

solving for. We are computing a monthly payment. We will put values in for every variable,

except (PMT). PMT stands for the payment.

Enter these values on your calculator.

N (number of payments) 72

I% (annual interest rate) 4.9

PV (Loan amount, make

this amount positive.)

25000

PMT Move cursor here and hit

green alpha button then

enter after you have entered

every other value.

FV (what you owe after

make all payments)

0

P/Y (payments per year) 12

C/Y (how often interest is

paid)

12

Begin / End

(We will always leave this

on end.)

End

Once you have entered all of the amounts scroll up to PMT. Make sure your cursor is flashing

next to PMT. It doesn’t matter what value is in the PMT. Your calculator will put in the correct

payment when you tell it to compute the payment. Hit the green ALPHA button the ENTER.

$401.46

Step-by-step explanation:

3/5

step-by-step explanation:

double number line is not a standard concept, so it must have been defined in your textbook. assume top line is numerator.

there are infinitely many solutions.