Most leases are in this category for annuities due

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Unformatted text preview: decimal format. When solving for FV, the calculator uses the unrounded value for PMT. 22 Chapter 2: Using the TVM and Amortization Worksheets Entering, Recalling, and Computing TVM Values You enter a TVM value by keying in a value and pressing the appropriate TVM key (,, , , , or 0). You recall a TVM value to the display by pressing and the TVM key. When you enter or recall a value for any of the five TVM variables (N, I/Y, PV, PMT, or FV), you can be in either the standard-calculator mode or a prompted-worksheet mode. The display responds differently according to the mode you are in. In the standard-calculator mode (accessed by pressing ), the variable label, the = sign, and the value you entered or recalled are displayed. In the prompted-worksheet mode, only the value you entered or recalled is displayed. Any label previously in the display remains. To compute a TVM value, press and the appropriate TVM key. When you compute a TVM value, you must be in the standard-calculator mode. Press to return to the standard-calculator mode. Entering a Value for N using You can use the key sequence to enter a value for N. Pressing automatically multiplies a displayed number by the value stored in the P/Y variable (number of payments per year. By entering the number of years (for example, 30) and pressing , you can calculate the number of payments required to pay off an annuity. Then press , to enter that value as the number of payments in a TVM calculation. Entering Inflows and Outflows The calculator follows the established convention of treating inflows of cash (cash received) as positive and outflows of cash (cash paid out) as negative. You must enter inflows as positive values and outflows as negative values. The calculator displays computed inflows as positive values and computed outflows as negative values. loan amount 23,000 Enter inflows as positive Time 400 400 Pmt 1 Pmt 2 400 400 Pmt 34 Pmt 35 Balloon Pmt 15,000 Chapter 2: Using the TVM and Amortization Worksheets 23 Steps in a TVM Calculation The worksheet stores the values and settings you enter until you clear the...
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This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.

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