Education Technology

# Knowledge Base

## Solution 34780: Computing Effective Annual Percentage Rate (APR) with Points and Fees on the TI-84 Plus C Silver Edition.

### How do I compute an effective APR with points and fees on theTI-84 Plus C Silver Edition?

The example below demonstrates how to calculate an effective APR with points and fees on the TI-84 Plus C Silver Edition.

Example: Assume there is a $100,000 mortgage with 2 points and$5,000 in fees. With an 8% interest rate for 360 months, what is the effective APR after points and fees?

• Press [APPS] and select [1:Finance].
• Choose [1: TVM Solver].

• Input 360 and press the down arrow key.
• Input 8 and press the down arrow key.
• Input 100,000 and press the down arrow key.
• Press [ALPHA] followed by[ENTER] to compute the monthly payment.

The total monthly payment is \$733.76 (rounded off to hundredths).

Compute the actual loan amount by subtracting points and fees on the PV= line:

• 100000 [X] .98 [-] 5000. This should store 93000 on PV.

• To compute the interest rate, or the effective APR scroll up I% and press [Alpha] followed by [ENTER].

The computed effective APR is 8.78%.

Please see the TI-84 Plus C Silver Edition guidebook for additional information.