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Hints_for_Investments_and_Payment_Calculations

# Hints_for_Investments_and_Payment_Calculations - .right If...

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CLASS: A question was asked of me if there are any hints as to how to handle calculator problems .... Try this...when you're working an investment or payment problem one of the steps is to enter three pieces of information into the calculator...right? And what are you doing this for? To find a 4th piece of information about the problem...As a example, to find the future value you are given the PV, the amount you invested, the IY, the yearly interest rate and the duration of the investment, N, given in years (at least in my examples I do) .... Once you do everything that's needed you hit CPT, FV(For the BA II PLUS) or (For the TI – 83 PLUS) you move the cursor across from FV and then hit ALPHA then ENTER and the FV comes up (or what you hope is the FV...right?) If
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Unformatted text preview: ..right?) If you walk away you still have that sinking feeling in your stomach that you were wrong but are at a loss as a way to prove it. ... How about this. ... since all of the 4 pieces of information you now have are interrelated why not pick a different 3 pieces of information (from the 4 given) to solve for a different 4th piece? Try this, enter in the PV (don't forget this is a negative) and the FV and, say the Years, N. ..then compute for the remaining piece that you already know, the IY. ... So when you hit IY it should come up with what you started with in the initial problem. ... If it does, you know the FV you came up with previously was right!!!! I hope this helps!...
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