find the value of a loan with hp12c

Question

I can't seem to resolve this problem with hp12c. You made a loan with 1,2% tax per month. You can pay it in two times: 125000 after the 10th month and 45000 after month 16th. They ask for the value of the loan, so I put 125000 PMT; 45000 PMT; 1,2 i; and I don't know what I put in n. How to solve this?

edit:

find the present value of a loan that you payed in 2 times. 1st: after 10 months of the loan you payed 125000 2nd: after 16 months of the payment you payed 45000

total of 170000, so the loan was less than this. I'd like to know how much it was. The rate is 1,2% per month

The exercise is really not posted in a good english. Please try to translate it better. There are many helpful sites on the internet. I even do not understand the exercise. And show what you have calculated. 125.000 PMT is not specific enough. You can make an edit. — callculus42, Nov 18 '16 at 19:50

score 0 · Accepted Answer · answered Nov 18 '16 at 20:40

To get the present value of 125000, which is payed after 10 months, you have to discount 125,000 ten times with $i=0.0012$:

$PV(125000)=\frac{125,000}{1.0012^{10}}=110,944.27$

Similar for the $45,000$ which are payed back after 16 months:

$PV(45000)=\frac{45,000}{1.0012^{16}}=37,181.28$

The sum of these two present values has to be equal to the loan amount.

find the value of a loan with hp12c

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