• Welcome Visitor! Please take a few seconds and Register for our forum. Even if you don't want to post, you can still 'Like' and react to posts.

Can this be solved on a financial calculator?


High Desert Ranger

Well-Known Member
Joined
Aug 8, 2007
Messages
247
Age
51
City
High Desert, Calif
Vehicle Year
1987
Transmission
Manual
You must make a payment of $1432.02 10 years from today. To prepare for this payment, you will make 5 equal payments, beginning today and for the next 4 quarters, in a bank that pays a nominal interest rate of 12%, quarterly compounding. How large must each of the 5 payments be?

I have figured out how to solve it writting it out on paper but am confused on how to solve it only using a calculator.
 
You must make a payment of $1432.02 10 years from today. To prepare for this payment, you will make 5 equal payments, beginning today and for the next 4 quarters, in a bank that pays a nominal interest rate of 12%, quarterly compounding. How large must each of the 5 payments be?

I have figured out how to solve it writting it out on paper but am confused on how to solve it only using a calculator.

not being rude, just curious as to why it has to be solved on a calculator...


i don't know about financial calculators, but I'm guessing you want like a one step calculation? enter everything once and get an answer? because obviously you could just enter in separate steps and plug in more information to get your final answer with the compound interest formulas.
 
Spreadsheets will do this easily...but a calculator...it would take a few memory stores and recalls...and that's where it can get tricky...
 
Spreadsheets will do this easily...but a calculator...it would take a few memory stores and recalls...and that's where it can get tricky...

Yeah, I can do it with a spreadsheet but I’m trying to help my wife with her finance class, and I don't think she will have access to a spreadsheet on her final. I managed to get the right answer but was unable to figure out how to enter it in the TVM keys to make it come out on the calculator. She was able to solve every other problem in the chapter but this one.
 
So its not a matter of solving the problem, but using the calculator to solve it.

Just wanted to know, would the payments be about $320?
 

Sponsored Ad


Sponsored Ad

TRS Events

Member & Vendor Upgrades

For a small yearly donation, you can support this forum and receive a 'Supporting Member' banner, or become a 'Supporting Vendor' and promote your products here. Click the banner to find out how.

Recently Featured

Want to see your truck here? Share your photos and details in the forum.

Ranger Adventure Video

TRS Merchandise

Follow TRS On Instagram

TRS Sponsors


Sponsored Ad


Sponsored Ad


Amazon Deals

Sponsored Ad

Back
Top