Posted by Tom Henderson on October 15, 2009 at 08:54:47:
In Reply to: Calculations posted by Grasshopper on October 07, 2009 at 21:47:31:
In a nutshell, you did not give your calculator enough information. There are 5 variables: N, I/yr, PV, PMT, FV. If you know 4 of the five variables, the calculator can solve for the missing variable.You have only 3 variables indentified. 1. N (I would put 36 months instesd of 1, since this is the time period involved) 2. PMt=$1083 3. FV=0. What you are lacking is either the I/Yr or PV to have enough information for the calculator to give you an answer.
You question should be, "How much money, AT WHAT YIELD, would I have to invest to have payments of $1083.
For some reason, your calculator gave you a PV for one month, with a PMT of $1083 of $1080 with a 3.33% yield.
Summary: You need to know what yield a PV would produce $1083 or at what PV would a certain yield produce $1083.
Hope this helps.
Tom Henderson