I have a new financial calculator, and I want to calculate what a payment would be for a $25,000 piece of equipment, at 7.5%, over 5 years (60 months). Can someone tell me how to punch in the correct functions to result in the correct payment. I have the PV, N, I, PMT, and FV functions. Thanks!
Benny
A proper calculator wouldn't need you to know all this - just the amount you want to borrow, the term and the interest rate. It would then work out the monthlies for you.
Rob Graham
General formula is:
PMT = PV * (i*(1+i)^n)/((1+i)^n - 1)
Your example without using any special keys
25000*(0.075/12*(1+0.075/12)^60)/((1+0.075/12)^60-1) gives 500.9487The '^' sign represents 'to the power of' - usually a key with an 'x (power of) n' on most calculators
Using the PMT key, I guess you'd key in
PMT, 25000, N, 60, i, .075/12
HTH
Rgds
__ Richard Buttrey Grappenhall, Cheshire, UK __________________________
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