TI: TVM Solver



TI: TVM Solver

Activity Overview

This activity explains how to use the TVM solver on the TI-83 Plus/TI-84 Plus to solve common finance problems.

Before the Activity

See the Activity PDF file(s) for detailed instructions for this activity.

Install the Finance App on the students' graphing calculators following the attached instructions.

• AppInstallInstruct.pdf

• 83fin02.pdf

During the Activity

Follow the procedures outlined in the Activity.

Students will:

• Understand how to use the TVM Solver (Finance App) on the TI-83 Plus/TI-84 Plus.

After the Activity

Review student results:

• As a class, discuss questions that appeared to be more challenging

• Re-teach concepts as necessary

Amortization Tables

Ac[pic]tivity Overview

In this activity, students carry out financial computations, involving amortization. Students will prepare amortization tables indicating principal payments, interest payments, and the balance on a loan for each time interval.

Before the Activity

• Select TVM Solver from the calculator menu

• See the attached PDF file for detailed instructions for this activity

• Print pages 24 - 28 from the attached PDF file for your class

• TimeValueMoney_TI83_Act10.pdf

During the Activity

Distribute the pages to the class.

Follow the Activity procedures:

• Use the TVM Solver to find the monthly mortgage payments using N, I%, PV, P/Y and C/Y values

• Find the balance after each payment

• Create a amortization table with principal, payments, and balance amounts

• View the payment schedule for different months

After the Activity

Review student results:

• As a class, discuss questions that appeared to be more challenging

• Re-teach concepts as necessary

Loans and Mortgages

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Activity Overview

In this activity, students perform financial computations, involving loans, their repayment and mortgages used as security for the repayment of a loan.

Before the Activity

• Select TVM Solver from the calculator menu

• See the attached activity PDF file for detailed instructions for this activity

• Print page 22-23 from the attached PDF file for your class

• TimeValueMoney_TI83_Act09.pdf

During the Activity

Distribute the pages to the class.

Follow the Activity procedures:

• Calculate the monthly payments to be made as repayment of a loan, using N, I%, P/Y, and C/Y values

• Calculate the maximum loan amount for a given monthly repayment amount using N, I%, PMT, P/Y, and C/Y values

After the Activity

Review student results:

• As a class, discuss questions that appeared to be more challenging

• Re-teach concepts as necessary

Compound Interest

 

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Activity Overview

In this activity, students use the TI graphing calculator to calculate compound interest. They understand that in compound interest computations, the interest from the previous period is added to the current principal and the new total is used as the basis for calculating the interest.

Before the Activity

• Select TVM Solver from the calculator menu

• See the attached activity PDF file for detailed instructions for this activity

• Print page 11-12 from the attached PDF file for your class

• TimeValueMoney_TI83_Act04.pdf

During the Activity

Distribute the page to the class.

Follow the Activity procedures:

• Calculate the future value of investments that earn interest compounded annually, quarterly, and monthly

• Enter the values for the total number of payments (N), annual interest rate ( I%), present value (PV), number of payments per year (P/Y) and number of compounding periods per year (C/Y)

• Calculate the final value of the investments

• Calculate the amount to be invested that will have a specified future value when invested under defined conditions

After the Activity

Review student results:

• As a class, discuss questions that appeared to be more challenging

• Re-teach concepts as necessary

Depreciation

 

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Activity Overview

In this activity, students perform computations involving depreciation of assets. They will study methods such as Straight line depreciation, Sum of the digits method and Double declining balance depreciation.

Before the Activity

• See the attached PDF file for detailed instructions for this activity

• Print pages 29 - 34 from the attached PDF file for your class

• TimeValueMoney_TI83_Act11.pdf

During the Activity

Distribute the pages to the class.

Follow the Activity procedures:

• Using Straight line depreciation method calculate the values and the new basis for each year's depreciation

• Create a table listing the years, adjusted bases for consecutive years, and the annual depreciation

• Using Sum of the Digits method, prepare a depreciation table listing the year, fraction of basis taken as depreciation for each year, depreciation, and the basis at the end of each year

• Calculate the Double Declining Balance depreciation for an asset

• Prepare a table listing the years, declining balance, and the depreciation allowed

After the Activity

Review student results:

• As a class, discuss questions that appeared to be more challenging

• Re-teach concepts as necessary

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