Solution 34780: Computing Effective Annual Percentage Rate (APR) with Points and Fees on the TI-83 Plus and TI-84 Plus Family of Graphing Calculators.
How do I compute an effective APR with points and fees on the TI-83 Plus and TI-84 Plus family of graphing calculators?The example below demonstrates how to calculate an effective APR with points and fees.
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-83 Plus and TI-84 Plus Family guidebooks for additional information.
Last updated: 6/15/2023