Directions: For the following time value of money (TVM) calculations, be sure to show financial calculator inputs (PV, FV, PMT, I, N). Identify the component you are solving for with a “CPT” and highlight in yellow. Any problem that does NOT show this information will earn 0 points. Solve the problem and enter the response next to the “CPT”

For example, if you deposit $400 into an account paying 4% interest compounded annually, how much will you have in the account after three years?

           PV=-400 *

           PMT=0   

N=3*1=(n*m)=3

I/Y=4%÷1=(i÷m)=4

FV=CPT=449.9

Question: You plan to buy a car that has a total "drive-out" cost of $25,700. You will make a down payment of $3,598. The remainder of the car’s cost will be financed over a period of 5 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 8% with monthly compounding of interest. (The first payment will be due one month after the purchase date.) What will your monthly payment be?