Using the payment formula from Page 388, work through the following problems. Make sure to set appropriate viewing windows.
1. By keeping all variables except the original debt constant, determine the
effect original debt changes have on the graph.
Let I = .01
Let M = 48
Graph:
A. P(D)
B. P(D + 1000)
C. P(D - 2000)
2. By keeping all variables constant except the interest rate, determine the
effect interest changes have on the graph.
Let P= $5000
Let M= 48
Graph:
A. P(I)
B. P(I + .01)
C. P(I - .02)
3. By keeping all variables constant except the number of monthly
payments, determine the effect the number of months have on the graph.
Let I = .01
Let D = $5000
Graph:
A. P(M)
B. P(M + 12)
C. P(M - 24)
Write a program for your TI-82 that will determine monthly payment given amount financed, number of monthly payments, and annual interest rate (in decimal form). Once you have entered the program into your calculator, test the program with the following information:
Amount financed: $10,000
Number of Monthly Payments:
Annual Interest Rate: 8% (Remember this is entered as .08)
The resulting payment amount should be $244.13