Dawnbridge

Casio fx-CG50 field manual for IB Math

AI only · 29 of 44

29

Using the finance (TVM) solver

Maths AI

Enter a loan or savings scenario into the finance / TVM solver with the correct cash-flow signs, then solve for any one unknown: payment, term, rate, or future value.

Goal

A car loan of $24,000 is repaid monthly over 5 years at 6.5% nominal annual interest, compounded monthly. Find the monthly payment.

1

From the MAIN MENU, open Financial. If you're already inside another app, press first to get back to MAIN MENU.

2

Press (COMPND) to open the Compound Interest solver. It lists the fields n, I%, PV, PMT, FV, P/Y, and C/Y.

3

Enter the loan values: n = 60 because there are 5×12 monthly payments, I% = 6.5, PV = 24000, FV = 0, P/Y = 12, and C/Y = 12. Press after each entry. Check Payment is set to End under (SET UP); beginning-of-period payments give a different answer.

4

Press (PMT) to solve for the payment. Signs follow the cash-flow convention: money you receive is positive and money you pay out is negative. You receive the $24,000 loan (PV positive) and repay it, so the Casio returns a negative PMT. To find a different unknown, leave that field blank instead and press its soft key (F1F5): the same solver returns the term, rate, or future value.

Norm2
→End
Compound Interest
n60
I%6.5
PV24000
PMT-469.59
FV0
P/Y12
C/Y12
nI%PVPMTFVAMORTZN
Result

PMT−469.59, so the monthly payment is $469.59.

Your turn

Work each one on your calculator, then check the answer.

  1. 1

    A $12,000 loan is repaid with monthly payments of $250 at 8.4% nominal annual interest, compounded monthly. How many monthly payments does it take to clear the loan?

  2. 2

    A $16,000 car loan is repaid with 60 monthly payments of $320, compounded monthly. What nominal annual interest rate is being charged?

  3. 3

    You deposit $200 at the end of each month into an account paying 4.8% nominal annual interest, compounded monthly, for 6 years. How much is in the account at the end?