beautypg.com

Computing the time-value-of-money – Texas Instruments TITANIUM TI-89 User Manual

Page 771

background image

Activities

771

Finding the Future Value of an Annuity

Finding the Future Value of an Annuity

Finding the Future Value of an Annuity

Finding the Future Value of an Annuity

Find the future value of an annuity using the values from the previous example where
the interest rate is 14%.

Computing the Time-Value-of-Money

Computing the Time-Value-of-Money

Computing the Time-Value-of-Money

Computing the Time-Value-of-Money

This activity creates a function that can be used to find the cost of financing an item.
Detailed information about the steps used in this example can be found in the electronic
chapter Programming, which is available from the TI Web site at education.ti.com and on
the CD in this package.

Time-Value-of- Money Function

Time-Value-of- Money Function

Time-Value-of- Money Function

Time-Value-of- Money Function

In the Program Editor, define the following Time-Value-of-Money (

tvm

) function where

temp1

= number of payments,

temp2

= annual interest rate,

temp3

= present value,

temp4

= monthly payment,

temp5

= future value, and

temp6

= begin- or end-of-payment

Enter the equation to solve for

s

.

solve(s=p

(1+i)^n,s) | i=.14

and

p=1000

and

n=6

Result: The future value at 14% interest is
2,194.97.