Operation Manual

Chapter 14: Applications 257
Note: Because there are no payments when you solve compound interest problems, PMT must be set to
0 and P/Y must be set to 1.
Using the TVM Solver
Using the TVM Solver
The TVM Solver displays the time-value-of-money (TVM) variables. Given four variable values, the TVM
Solver solves for the fifth variable.
The
FINANCE VARS menu section describes the five TVM variables (Ú, æ, PV, PMT, and FV) and P/Y and
C/Y.
PMT: END BEGIN in the TVM Solver corresponds to the FINANCE CALC menu items Pmt_End (payment
at the end of each period) and
Pmt_Bgn (payment at the beginning of each period).
To solve for an unknown
TVM variable, follow these steps.
1. Press Œ Í Í to display the TVM Solver. The screen below shows the default values with
the fixed-decimal mode set to two decimal places.
2. Enter the known values for four
TVM variables.
Note: Enter cash inflows as positive numbers and cash outflows as negative numbers.
3. Enter a value for
P/Y, which automatically enters the same value for C/Y; if P/Y ? C/Y, enter a unique
value for
C/Y.
1. Press Œ Í to select
1:Finance from the
APPLICATIONS menu.
2. Press Í to select 1:TVM Solver from the CALC VARS
menu. The TVM Solver is displayed.
3. Enter the data:
N=7
PV= M1250
PMT=
0
FV=2000
P/Y=1
C/Y=12
4. Move the cursor to æ and press ƒ \.
YYou need to look for an interest rate of 6.73% to grow
1250 to 2000 in 7 years.