TI_83_and_TI_83_Plus_Tutorial

TI_83_and_TI_83_Plus_Tutorial - TI 83 and TI 83 Plus...

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TI 83 and TI 83 Plus Tutorial The TI 83 is a fairly easy, but more difficult than most, to use financial calculator which will serve you well in all finance courses. This tutorial will demonstrate how to use the financial functions to handle basic time value of money problems. I will keep the examples rather elementary, we will cover more difficult problems in class. There is one adjustment which needs to be made before using this calculator. By default the TI 83 displays only two decimal places. This is not enough. Personally, I like to see five decimal places, but you may prefer some other number. To change the display, press the Mode key, then the down arrow key one (to the Float line). Next, use the right arrow key to highlight the 5 and press Enter. Finally, press 2nd Mode to exit the menu. That's it, the calculator is ready to go. Example 1 - Lump Sums We'll begin with a very simple problem which will provide you with most of the skills to perform financial math on the TI 83: Suppose that you have $100 to invest for a period of 5 years at an interest rate of 10% per year. How much will you have accumulated at the end of this time period? In this problem, the $100 is the present value (PV), N is 5, and i is 10%. Before entering the data you need to put the calculator into the TVM Solver mode. Press 2nd then X -1 then Enter (on the TI 83 Plus, press the Apps button, choose the Finance menu, and then choose TVM Solver) . Your screen should now look like the one in the picture. Enter the data as shown in the picture making sure that PMT is set to 0. Now to find the future value simply scroll down to the FV line and press Alpha then Enter. The answer you get should be 161.05. A Couple of Notes 1. Every time value of money problem has either 4 or 5 variables (corresponding to the 5 basic financial keys). Of these, you will always be given 3 or 4 and asked to solve for the other. In this case, we have a 4-variable problem and were given 3 of them (N, I/Y, and PV) and had to solve for the 4th (FV). To solve these problems you simply enter the variables that you know on the appropriate lines and then scroll to the line for the variable you wish to solve for. To get the answer press Alpha Enter. Be sure that any variables not in the problem are set to 0, otherwise they will be included in the calculation. 2.
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TI_83_and_TI_83_Plus_Tutorial - TI 83 and TI 83 Plus...

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