Dec 9th, Book Report

T.V.M Solver

The T.V.M is used to find a missing variable in interest rate, time, and future value. It is also used for financial calculations. Everything under “TVM Solver” is a function that does a calculation based of the values entered in the TVM Solver.

How to get to the T.V.M Solver in your calculator:
1. Turn on calculator
2. Press “Apps”
3. Press “Finance”
4. Press “TVM Solver”
The variables in the TVM Solver are:

N = # of years.

I% = The % interest (or discount if you’re receiving money you) you are expecting.

PV = Initial Investment (this number should be negative if you are investing, as you’re giving your investing your money).

FV = Future value

PMT = Number of payments per period (period set below).

P/Y = Periods per year (should generally be one).

BEGIN = You should have your Ti-83 be on “END” by default, but you will want to change it to begin when dealing with annuity due.

END = You want to have this set when dealing with ordinary annuity.
Examples

Question 1:

We want to invest $1000 today and want it to be $5000 10 years from now. What is the interest rate we need to accomplish this?

Put into the calculator in the TVM Solver

N = 10

I% = 0 (because we don’t know what the interest rate is)

PV = -1000 (negative 1000 because that’s how much we’re investing)

PMT = 0 (no additional payments being paid / period )

FV = 5000 (this is how much we want to have by the end of 10 years)

P/Y = 1
After entering that all in go:
“2nd”
“Mode”
(It will take you back to the display screen.)
Next, press
“Apps”
Finance”
“TVM_I% (that’s number 3)

Your result should be 17.46%

That all means that if you invest $ 1000 today and want $5000 in 10 years from now, the interest rate you must have is 17.46%.
Question 2:

What must I invest now at 8% to get $5000 10 years from now?
Put into calculator in the TVM Solver

N = 10 (10 years)

I% = 8 (enter whole numbers, TVM Solver converts it to .08 for you)

PV = 0 (0 because we want to know how much to invest to get $5000)

PMT = 0 (no additional payments being paid / period )

FV = 5000 (this is how much we want to have by the end of 10 years)

P /Y= 1
After that go:
“2nd”
“Mode”
(Takes you back to your display screen)
Next press
“Apps”
“Finance”
“TVM_PV” (that’s number 4)

Your result should be -2315.96
That all means that if you invested (your investing which is why it’s a negative) $2315.96 today at 8%, in 10 years you will have $5000.

http://giddlebits.wordpress.com/2007/01/25/how-to-do-time-value-of-money-on-a-ti-83-plus/
Thank you Nathan Snell‘s Blog for the information and for the questions examples!

Book Report

TVM Solver

To use the T.V.M Solver, first press the "APPS" key then select "FINANCE" then go to "T.V.M Solver".

N: is the number of periods in the term of your investment, annuity, loan, etc.

I%: represents the rate of interest before adjustment for inflation for an investment, annuity, loan, etc.

PV: means the present value of the investment. Can be positive or negative. If it is positive it indicates the amount of money gained by the investment. If it is negative it indicates the amount of money lost or paid out to the investment.

PMT:represents the payment made to the investment or to pay for a loan.

FV: represents the future value of an investment after compounding period.

P/Y: represents the number of payments per year from an investment. Must be a positive integer.

Here are two options for no payment periods:

-Set "N" to years and P/Y=1

OR

-Set "N" to payment periods and P/Y=C/Y (Compounding periods per year)

"PMT: END BEGIN.": used to set the TVM Solver for 'ordinary' annuities, (END), or annuities 'due' (BEGIN).

Here are some examples:

For my References I used the following link: http://argyll.epsb.ca/jreed/calculator/ti83p/TVM.htm

The examples, screenshots, and pictures that I used are also from this site.

I also used wikipedia search to help understand some of the words I didn't know.

Tuesday September 9th, 2008

We did not do Mental Math today because Mr. Maksymchuk wanted to talk about the blog and the posts for the "Book Reports" on the T.V.M solver and give us more time for the Book Report posts. Mr. Maks talked about referencing the sources on the T.V.M solver and about plagiarism. Don't just copy and paste things into your blog, especially words you do not understand. Type it in your own words please.
In 1991, Mr. Maks talked about a student who cheated, the student had found a journal and wrote out a paper for an assignment and did not reference the sources, he was kicked out of University and banned from going to other universities for a while. Plagiarism in high school wouldn't result in such a punishment of getting kicked out and banned from schools, it just goes to show that you shouldn't copy anyone elses work without referencing it first. An assignment in high school that is plagiarized will result in a 0 mark on that assignment. The Internet is a great source for information and is greatly used today. Please do not plagiarize!


With great power comes great responsibility. - Uncle Ben Parker, from the 1st Spiderman Movie!

We have until the end of today to work on the "Book Reports" and post them to the blog.
Budget things can still be checked by Mr. Maks, etc.
Mr. Maksymchuk put on some Christmas songs on for us to enjoy. I found the music annoying, sounds like some old Fuedal era music... Well not anymore, thats good.
8 More classes left until Christmas break.
16 Days until Christmas from today! Yeah!!!!

T.V.M solver

T.V.M solver is designed to help you solve problems that in valve money growing at a predetermined interest rate over a set amount of time.
To get to T.V.M Solver you go to apps then to financial then choose T.V.M Solver. Now that we can get their let’s get down to business. Here is an example. So you have $100 that you are going to invest at 10% a year for 5 years.

PV Present value $100

F/V future value

N is the number of years 5

I is the interest rate 10%

P/Y payments per year 1

C/P compound per year 1

Pmt amount of money invested per year 0

When you have all the data in you go down to FV (future value) and press alpha enter. That will give you the answer which should be $161.05.

hear is another example of how to solve for n:

Imagine that you have just retired, and that you have a nest egg of $1,000,000. This is the amount that you will be drawing down for the rest of your life. If you expect to earn 6% per year on average and withdraw $70,000 per year, how long will it take to burn through your nest egg (in other words, for how long can you afford to live)? Assume that your first withdrawal will occur one year from today (End Mode).

P/V=-1000000

F/V=0

N=

I%=6

P/Y=0

C/P=0

PTM=70000

Now you can go to N and and solve by pressing alpha enter and that should give u 33.39 witch is how long you Can live for off of the $1000000.

examples provided by: http://www.tvmcalcs.com/calculators/ti83/ti83_page1

Book Report: T.V.M. Solver

Thanks to the internet, this book report will tell you on how to access the T.V.M. on your calculator and give you some examples.

T.V.M stands for Time Value of Money. TVM is based on the idea that money received earlier is worth more than the same amount of money received later.

To get to the T.V.M. solver on your calculator, you press APPS, ENTER, ENTER, and you will get to a screen which shows these following variables:

N= total number of payments
I%= nominal interest rate, expressed as a percent (use 5, for 5%, NOT 0.05)
PV= present value or principal
PMT= amount of each payment (for mortgages and annuities)
FV= future value
P/Y= payments per year
C/Y= compounding periods per year

Here are examples to represent both algebraic and TVM Solver solutions:

1.Solving for Future value: If you deposit $2500 in an account earning 12% interest compounded weekly, how much is it worth in 4 years?
N= 4
I%= 12
PV= 2500
PMT= 0
FV=
P/Y= 1
C/Y= 52

After you have filled in all the numbers, move your curser to FV= and press ALPHA SOLVE (enter) and the number 4037.95 should show up where the FV= is. That’s the final answer for this question.

2.SSolving for present value: How much money must you deposit now, if you need $10000 in 4 years, and can earn 5.5% interest compounded monthly?

Now, we bring up the TVM Solver, set..
N = 4,
I% = 5.5,
PV =
PMT = 0,
FV = 10000,
P/Y = 1,
C/Y = 12.

Move to the present value line and press ALPHA SOLVE (enter). The answer is -8029.22 (the answer is negative, because you have to deposit that amount).

How long does it take $5000 at 8% interest compounded daily to reach a value of $7500?
N =
I% = 8
PV = 5000
PMT = 0
FV = 7500
P/Y = 1
C/Y = 365

Move the cursor to the line for N and press ALPHA SOLVE (enter) to get the answer.

Book report, T.V.M. solver

With the help of my trusty internet friend, I have found that the T.V.M. solver (Time value of money) functions to analyze financial instruments, such as loans, mortgages, leases and savings.
To get to the T.V.M. solver on your calculator, hit "apps" then "finance" and that leads you right to the "t.v.m. solver"

Now you need to fill in the blanks on your calculator, but before you can do that you need to know what the letter symbols beside each blank means.
N= The number of payment periods
I%= The interest rate
PV= Present value
PMT= Payment amount
FV= Future value
P/Y= Payments per year
C/Y= Compounding periods per year

(remeber to ender cash inflows as positive numbers, and cash outflows as negative numbers)

Examples:
Financing a car.
You have found a car you would like to buy. The car costs $9,000. You can afford payments of $250 per month for four years. What annual percentage rate (APR) will make it possible for you to afford the car?

Enter the T.V.M. solver
Enter known values:
N=48;
PV=9000;
PMT=M250 (Negation indicates cash outflow.);
FV=0;
PpY=12 (computes an annual percentage rate);
CpY=12;
PMT=END.

Example 2
Calculaing interest on a fixed payment.
At what annual interest rate, compounded monthly, will $1,250 accumulate to $2,000 in 7 years?

Enter the T.V.M solver.
Enter known values:
N=7;
PV=M1250 (Negation indicates cash outflow or investment.);
PMT=0;
FV=2000 (future value is cash inflow or return);
PpY=1;
CpY=12;
PMT=END.
Place the cursor on the I% prompt and solve to get your interest rate.

dibs

http://gator.dt.uh.edu/~kingt7/courses/FIN3302/8992finapps-eng.pdf

Here is my T.V.M solver Book Report

The T.V.M solver works by filling in the missing variables of finance. There are 8 variables that are associated with this program. Next I will explain what each of the variables mean.

N: represents investement and annuity or loans.

I%: it will also be a positive integer, represents the "normal rate" of the investiment and annuity or loan. it is always writen as a percent instead of a decimal or a fraction.

PV: represents the " present value" of the investiment and annutiy or loan.

PMT: represents a payment that is used to pay off a loan or make an annuity.

FV: it represents " future value" for an investiment, annuity or a loan after the N compounds have passed.

P/Y: represents the payment of a loan or annuities for one year.

C/Y: represents the compounding period year after year.

PMT:END BEGIN, this allows the user to set the TVM solver for " ordinary annuities, ( END), or anuities 'due' ( BEGIN)

T8

Dec 5th 2008

10 More Classes Till Christmas Holidays

To day we have been asked to do a some what of a "BOOK REPORT" on the "T.V.M SOLVER"

T.V.M stands for Time . Value . Money

So now each of us have to look for a website that explains what T.V.M Solver dose and what all the functions mean. Now no one can have the same website so hurry up and find one before all are taken!!! After that we all need to blog about what we learn about the T.V.M Solver, but we are only to post it in class on Monday so people (not naming anyone) wont just copy what some brave sole who actually toke the time and got it done.

We also talked about RULE OF 72.. What is the Rule of 72? Well if you want to find the number of years required to double your money at a given interest rate, you divide the interest rate into 72. The rule is remarkably accurate!

So.. Now you know the Rule of 72.. your life is now complete!!! Ah just kidding... Have a good weekend.

T.V.M solver

http://www.tvmcalcs.com/calculators/ti83/ti83_page1