Finance on the TI-83/TI-83 Plus/TI-84
Written by Jeff O’Connell – joconnell@ohlone.edu
Ohlone College
http://www2.ohlone.edu/people2/joconnell/ti/
You can get to the TVM solver by pressing the [FINANCE] key and selecting option 1 on the TI-83, or pressing [APPS]
and selecting [1:Finance] then [1:TVM Solver...] on the TI-83 Plus/TI-84. You will see a window that looks like the
following except there may be different numbers.
N=Number of compoundings
I%= annual interest rate
PV= present value
PMT= payment
FV= future value
P/Y= payments per year
C/Y= compoundings per year
PMT: END BEGIN
For our purposes, we will always set P/Y and C/Y to the same thing, the number of compoundings per year.
Also all payments are made at the end of the compounding period, so END should always be highlighted.
Compound Interest
Example 1: If $100 is deposited into an account that
earns 5% interest compounded monthly, then how
much will be in the account after 3 years?
Solution: Put the following into the calculator. Please
note that for the percentage we put in 5 and not .05.
PV was a cash out lay. Cash outlays always go into the
calculator as a negative number. As always, make sure
that END is highlighted and move the cursor to FV=
(You will not be allowed to leave FV blank until all of
the other values are filled in) and press [SOLVE]
([alpha] [ENTER]).
The value of 116.1472231 gets filled in for FV, so the
answer is $116.15.
Example 2: If $100 is deposited into an account the
earns 5% interest compounded monthly, then how long
will it take for the account to have $150?
Solution: Here we are given everything except N, the
number of compoundings.
Since the FV is not a cash outlay we put the value in as
a positive number. Now solve for N and we get
N=97.5.
Future Value
Example 3: What is the value of an ordinary annuity at
the end of 15 years if $100 is deposited each month into
an account earning 5% compounded monthly.
Solution:
PV is the value of the account at the beginning which is
0. PMT is a cash outlay so it goes in as –100 Solve,
and FV = $26728.89.
Present Value
Example 4: You wish to set up an annuity that pays
$350 per month for 5 years. How much money must be
deposited into an account that pays 6% compounded
monthly in order to establish the annuity?
Solution:
FV should be 0 since you want there to be no money in
the account after the 5 years. Solve and
PV = –$18103.95.
