00:01
Ok, these type of problems involving annuities require a financial applications package.
00:06
And the ti -84 plus calculator has one.
00:10
Press apps, fourth line down, second column in.
00:14
First item is finance.
00:16
Press enter, and then choose tvm solver.
00:23
The input, n, is number of months you want the annuities to last for.
00:29
We are told it's 20 years.
00:31
So n then will be 20 times 12, 240 months in total.
00:40
I%, is simply 5 .6.
00:43
That's the interest rate.
00:45
Present value is going to be 25 ,000.
00:53
And that is minus because you put the money into the bank.
00:57
So it goes from you to the bank, so negative.
01:02
The pmt is the payment to you.
01:06
And that you want to work out.
01:09
So right now, leave that at 0...