Académique Documents
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Slide 1
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Financial Calculators
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Slide 2
Financial Calculators
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Slide 3
TI Business Analyst
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Slide 4
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Cautions
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Slide 5
I/YR
PV
PMT
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FV
P/YR
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Slide 6
Future Value
You deposit $2000 today at 6% interest.
How much will you have in 5 years?
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Slide 7
Future Value
You deposit $2000 today at 6% interest.
How much will you have in 5 years?
N
5
I/YR
6
PV
PMT FV
2000- 0
?
P/YR
1
$2675.45
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Slide 8
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Slide 9
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I/YR
6
$6982.79
PV
0
PMT FV
300- ?
P/YR
1
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Slide 10
Present Value
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Slide 11
Present Value
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N
8
I/YR
7
PV
?
PMT FV
P/YR
0
15000 1
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$8730.14
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Slide 12
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Slide 13
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N I/YR
3 4
PV
?
PMT FV
500- 0
P/YR
1
$1387.55
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Slide 14
Intrayear Compounding
Find the present value of a $400
payment received each six months for
3 years. Interest is 4%, compounded
semiannually.
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Slide 15
Intrayear Compounding
Find the present value of a $400
payment received each six months for
3 years. Interest is 4%, compounded
semiannually.
N
I/YR
PV
PMT FV
P/YR
400
$2240.57
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Slide 16
Sample Problems
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Slide 17
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Solutions
N
I/YR
8
4
24 8
12 12
PV
PMT FV
?
500
?
0
100- 0
P/YR
0
2
5000 4
?
12
Answer
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$3662.74
$3108.61
$112.68
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Slide 18
Annuities Due
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I/YR
PV
PMT FV
4
6
0
400- ?
Answer: $1854.84
P/YR
BEG
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Slide 19
Interest Rates
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Examples:
If you borrow $1300 and pay back $1800 in three
years, what annual rate of interest are you
paying?
If you borrow $30,000 and pay back in four
equal annual installments of $9000, what interest
rate are you paying?
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Slide 20
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Solutions
N
I/YR
PV
3
4
?
?
1300 0
1800- 1
30000 9000- 0
1
PMT FV
P/YR
Answer
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11.46%
7.71%
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Slide 21
Sample Problems
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Slide 22
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Solutions
N I/YR
PV
3 ?
4 ?
1000 0
1728- 1
20000 5640- 0
1
PMT FV
P/YR
Answer
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20%
5%
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Slide 23
Compounding Periods
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Slide 24
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Solutions
N I/YR
PV
? 5
? 12
? 12
30000 7000- 0
10
3
10
3
PMT FV
P/YR
Answer
1
1
2
4.94
9.69
18.85 or
9.4271 yrs
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Slide 25
Sample Problems
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Slide 26
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Solutions
N I/YR
PV
? 6
? 8
50000 11870- 0
10
3
PMT FV
P/YR
Answer
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1
1
4.999
14.27
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Slide 27
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Slide 28
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Example:
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N I/YR
PV
PMT FV
P/YR
9 6
500000
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$73,511
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Slide 29
Sample Problems
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Slide 30
Sample Problems
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PV
PMT FV
7 5
300000 ?
P/YR
Answer
51,846
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Slide 31
Perpetuity
R= annual return in $
r = discount rate
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Slide 32
Sample Problems
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