#Pv beancounter full#
Some have encountered ridicule for bringing it but that’s only because as I said earlier, the calculator is the car salesman’s worst nightmare.The emonTx V3.4 is a low power wireless energy monitoring node designed for monitoring AC electrical power on (up to) 4 separate (household/building) circuits using non-invasive clip-on CT current sensors and an AC-AC Voltage adapter to provide a voltage signal for full Real Power calculations and AC VRMS readings. I’ve had many friends try this “technique” and bring their financial calculators with them to purchase their car. But the important thing is that now you can confirm (and mostly debunk) what the car salesman is telling you. Now, if you don’t mind paying for your car for 5 1/2 years, then this might be a good deal for you. If we type in each of these numbers, then the corresponding button on the calculator (.49167, I/YR, 14000, PV, 249, PMT, 0, FV) and then press “N” we get (drumroll please).Ħ6! That means that in order to pay off this car you will need to pay $249 for almost 5 1/2 years. 49167)įV – $0 (the amount we’ll owe at the end of 36 months) 49167 (because N and I/YR have to both be in months and 5.9/12 =.
N – Blank (this is what we’re solving for) So let’s figure out what the interest rate really is in our above situation. It’s just a “plug-and-chug” type of thing. They are:īy filling in each of these “variables” you can solve for the one you want to know.
There are only 5 buttons that will help you out in such a situation and they are usually located in a group together – at the top of the calculator for example. Well, is that a good deal or not? Time to whip out the nightmare… The dealer will try and tell you that you can drive away today by promising to make payments of $249 a month with a 5.9% interest rate on a $14,000 car. The problem is that car dealers like to think that their unsuspecting customers do not understand this concept of the time value of money. Using this knowledge, you can now scare the pants of your car dealer and save a ton of money doing it. So by curbing our desire for that new iPod Nano today, we will end up with more money at the end of the month. So if we took the $1 today we would be able to invest it, or stick it in a regular ‘ol savings account and at the end of the month we might have $2. Interest accumulates over time so that our investment becomes more valuable in the future. This is why we invest money in bonds or park our money in a savings account. You see, the concept of the time value of money simply means that as time passes, money becomes more valuable. But why? This is the time value of money at work. For example, would you rather have $1 today, or $1 at the end of the month? The correct answer of course, is the $1 now.
If you think about it, you already know quite a bit about this concept already. The time value of money, to be more specific. The basic concept behind the nightmare which is the financial calculator is actually quite simple – time. It looks innocent enough – a few more buttons than the normal run-of-the-mill gradeschool variety, but who really knows what those “PMT,” “I/YR,” and “FV” buttons do anyway? Well, if you happen to be buying a car anytime soon – those buttons could end up saving you thousands in the long run, which is not a bad return on a $19.95 investment.
That’s right – a car salesman’s worst nightmare is a good ‘ol financial calculator. And you might be surprised that the culprit is in millions of backpacks across the country. I bet you thought car salesmen didn’t have nightmares – didn’t you? Well, you’re wrong. Sep, 2005 by Jason Guthrie in Credit & Debt, Humor
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