Question

Please help me solve with functions of a ti baii calculator. Thank you!

1 pts Question 11 You want to buy a new sports car for $89,938. The contract is in the form of a 51-month annuity due at a 6.27 percent APR. What will your monthly payment (in $) be? Answer to two decimals.

Answer 1

Answer-

Given
Cost of sports car = $ 89938
Duration = 51 months paid at beginning of month as its annuity due
APR = 6.27 % = 6.27 % / 12 since the payments are monthly

PV = $ 89938
FV = 0
Duration = N = 51 months
interest rate = I / Y = 6.27 % / 12 = 0.5225
Monthly payments = ?

Therefore monthly payments = $ 2002.99 = $ 2003 (approximately )

NOTE- Input the given values in the calculator and IMPORTANT thing is to set the calculator in BGN mode as it is in END mode by default. For changing to begin mode we have to use SET function in calculator. The BGN mode is used because it's annuity due which means that the payment is made at the beginning of month.