*Use the "Finance key on your TI-83, or 84 to solve the following problem*
Ok I have a problem I have been working on for hours now, and I cannot seem to crack it despite the use of the application on my calculator it is not coming out right, please someone show me the steps on how to do this. it reads as so.....
A couple wants to buy a motorcycle in 4.5 years. What amount should they invest now at 5.16% interest compounded quarterly in oder to have a $4950 down payment for the motorcycle at the end of the 4.5 years.
I then have to list the numbers as so....
N = 4.5* 4 = 18 quarters
I% = 0.0516 / 4 = 0.0129 quarterly interest rate
PV = You'll have to solve for this. That is the question
PMT = $0
FV = $4950
You may wish to check your settings for "Beginning of Period" or "End of Period". I'm thinking you'll want "Beginning" on this one.