Name: Compare Mortgage Payments at Two Different Interest Rates (TI-84 TVM Solver)
Uploaded: 2020-03-04T16:21:30.000Z
Duration: 4 min 41 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

To-infinitive

You plan to pay 10% as a down payment and take

Part a, how much is the loan amount going to be?

Because you are putting 10% down, the loan amount

is going to be 90% of $222,000 since 100% minus 10% is 90%.

So for part a we have to find 90% of 222,000.

To find the percent of a number, we convert

0.9 times 222,000 is 199,800 and therefore

And then for part b, what will your monthly

To answer this question we will use the TI-84 TVM solver.

information below where capital N is the total

Because you are paying monthly for a period

of 30 years, capital N is 30 times 12, which is 360.

I% for part b is 6% and therefore we enter six here.

PV stands of present value, which is a beginning

loan amount, which we now know is 199,800.

This is positive because you are receiving

PMT stands for payment amount, which we are solving for.

FV stands for future value, which is zero

because after 30 years the loan is paid off

And payments per year and compounds per year

will both be 12 because you are paying monthly

and we assume the interest is compounded monthly.

And we always leave the PMT option at the bottom set on end.

PV is 199,800, this is the present value, enter.

We are solving for the payment, so we'll come

And payments per year and compounds per year are both 12.

And notice how we do have PMT set on end.

To solve for the monthly payment we go up

to the row for PMT or payment and press alpha, enter.

which means the monthly payment when the interest

rate is 6% is $1,197.90 to the nearest cent.

amount is negative, we do enter a positive value

And then for part c, what will your monthly

To answer this question using the TVM solver

we simply change the 6% to 7% and then solve for PMT again.

So going back to the calculator, again we change

the six to a seven for the interest rate.

And now we go down and solve for the payment again.

So go down to the payment row, the cursor does

have to be in this row to solve for this,

then the monthly payments are going to be $1,329.27.

Looking at the monthly payments, notice how

when the interest rate goes up from 6% to 7%

which is why the interest rate of a mortgage

Subtitles ListPlay Video

Compare Mortgage Payments at Two Different Interest Rates (TI-84 TVM Solver)

assume

present

period

determine