notes re TI84 Silver Edition

Sample problem: $500 is deposited in a bank at 6.5 annual interest ... if the interest is compounded monthly, how much will you have after 5 years? how many years and months until the $500 becomes $1,000

• some problems can be solved with recursive formula

  nMin =0 where you will start counting the numbers in the sequence (most likely this value is 1)
  u(n)=(1+.065/12)*u(n-1) the pattern for the sequence 
  u(nMin)=500 the first number in the sequence
  

  Click here for info on working with recursive formulas and the Ti84

• some can be solved with TMV Solver

  n =
  I% = 6.5
  PV = 500
  PMT = 
  FV =
  P/Y =
  C/Y =
  

Notes from the Marymount Web page

click

login = marymount and password = 6 letters (shortest URL for a college + the elements + george clooney)

Note 1MïFinance Mode 
The Finance TVM (Time Value of Money) solver will solve problems about 
simple loans, mortgages, and investments. Press and select 1:FINANCE. Choose 1:TVM Solver

Enter values into all but one of the following positions. The solver will then calculate the 
missing entry. In general, negative amounts indicate money you give to the 
bank and positive amounts indicate money you receive. 

Here are 7 variables (generally, you know 6 of the 7 and are using the calculator to find the 7th)
N = the total number of payments. 
I% = the annual interest rate as a percent
PV = the principal or starting value (this is negative for investments). 
PMT = the payment or regular deposit (this is negative for investments). 
FV = the final value. 
P/Y = payments per year This value represents the number of payments per year for annuities and loans
C/Y = interest calculations per year. This represents the number of compounding periods per year. These must both be positive integers greater than 1  
PMT:END BEGIN indicates whether payments are made at the end or beginning of each month. 

STRATEGY: After entering the six known values, highlight the value you want to find and 
press [SOLVE]. 

Be careful

• 5 years = 60 months but if n=1, then your answer is when n=61
• 6.5% is .065 as a decimal
• if you are working with compounding monthly, then n=5 means 5 months not 5 years
• most answers can be "common sensed" i.e. check for common sense

Some other good links

• atomiclearning
• ticalc.org
• one school named Truckee Meadows Community College which includes these sample problems:

  "Bob invests $20,000 into an account that pays a nominal rate of 11% compounded daily. Determine the future value of Bob's account if the term of the investment is 5 years."

  "June and Joan build an annuity for 10 years. They want to have $400,000 at the end of this time. Suppose they can get 8% nominal interest from a bank where the compounding takes place monthly. If they make their payment at the end of the month, how large should their monthly payment be?"

  Sue Simmons wants to re-finance her house. She currently owes $120,000 and closing costs will be $4,500. She gets a 30-year mortgage at 6% nominal interest. How large will her monthly payment be

• another location
• math professor from Delta College