They help you solve problems involving annuities

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Unformatted text preview: nter/compute FV Future value Enter/compute P/Y Number of payments per year Enter-only C/Y Number of compounding periods per year Enter-only END End-of-period payments Setting BGN Beginning-of-period payments Setting P1 Starting payment Enter-only P2 Ending payment Enter-only BAL Balance Auto-compute PRN Principal paid Auto-compute INT Interest paid Auto-compute 0 \ Chapter 2: Using the TVM and Amortization Worksheets 21 Notes about the TVM and Amortization Worksheets sets N, I/Y, PV, PMT, and FV to zero; does not affect P/Y, C/Y, or the BGN/END setting. sets P/Y and C/Y to 12. sets END (not BGN). \ sets P1 and P2 to 1, and BAL, PRN, and INT to zero. sets N, I/Y, PV, PMT, and FV to zero; P/Y and C/Y to 12; END (not BGN); P1 and P2 to 1; and BAL, PRN, and INT to zero. When solving a problem using only four of the five TVM variables, make sure the unused variable is zero. Enter values for PV, PMT, and FV as negative if they are outflows (cash paid out) or as positive if they are inflows (cash received). Use to enter a negative value. Enter I/Y as the nominal interest rate. The TVM worksheet automatically converts I/Y to a “per period” rate based on the values for P/Y and C/Y. When you enter a value for P/Y, the same value is automatically entered for C/Y. (You can change C/Y.) The END/BGN setting lets you specify whether the transaction is an ordinary annuity or an annuity due. In ordinary annuities, the payments occur at the end of each payment period. Most loans are in this category. For ordinary annuities, select END. In annuities due, payments occur at the beginning of each payment period. Most leases are in this category. For annuities due, select BGN. Pressing when P1 or P2 is displayed updates P1 and P2 to represent the next range of payments. A computed value for BAL after a specified number of payments may be slightly different than a computed value for FV after the same number of payments. When solving for BAL, PRN, and INT, the calculator uses the PMT value rounded to the number of decimal places specified by 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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