Wednesday, December 10, 2008

TVM SOLVER book report

The TVM Solver program in the TI 83 is used to calculate compound and normal interest. The way you find this program is by pressing the APPS then (1) finance, enter then (1) TVM Solver and enter again. The Screen that pops up next is as follows:
N= Total number of payment periods
I%= Annual interest rate
PV= Present Value
PMT= Payment amount
FV= Future value
P/Y= Number of payment periods per year
C/Y= Number f compoundings per year
PMT= Press END for ordinary annuity or, BEGIN for an annuity due

NOTE: Money spent will be entered as a negative, and money earned will be entered as a positive.

Thanks to smartdata.usbid.com/datasheets/usbid/2000/2000-q3/83finqrg.pdf for the examples.

EXAMPLE # 1

What is the monthly payment for a $25,000 car loan to be paid over 4 years with an 8.5%
interest rate?
1. Enter the TVM Solver.
Press [2nd] [Finance] on the TI-83 or [APPS] and select 1:Finance on the TI-83 Plus.
2. Enter the known values. Your screen should appear as follows.
3. Solve for the unknown value.
Place the cursor at PMT and press [2nd] [Solve] (above the ENTER key). See the
second figure above.
***Note the square that appears by PMT. It means this value has been computed,
not entered.***

EXAMPLE #2
Find the future value of $10,000 invested at 10% interest over 25 years, with an
additional $2,000 added at the end of each year.
1. Enter the TVM Solver.
Press [2nd] [Finance] on the TI-83 or [APPS] and select 1:Finance on the TI-83 Plus.
2. Enter the known values. Your screen should appear as follows.
3. Solve for the unknown value.
Place the cursor at FV and press [2nd] [Solve]. See the second figure above.

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