What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of...
Transcript of What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of...
Compound Interest II and TVM Solver
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June 02, 2015
What's Going On?
Learning Goal I will be able to determine the "Present Value" of compound interest investments.
Present Value
The TVM Solver
Exploring the Variables
Compound Interest II and TVM Solver
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LGL
You decide to invest $5,000 at 2.5%. What is your investment worth after 6 years if it earns
a. Simple Interest?
Compound Interest II and TVM Solver
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June 02, 2015
LGL
You decide to invest $5,000 at 2.5%. What is your investment worth after 6 years if it earns
b. Compound Interest, compounded monthly?
Compound Interest II and TVM Solver
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June 02, 2015
Present Value
How much would you need to invest today, in an investment earning 5% interest compounded quarterly, to have $10,000 in 5 years?
Compound Interest II and TVM Solver
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June 02, 2015
Present ValueHow much would you need to invest today, in an investment earning 5% interest compounded quarterly, to have $10,000 in 5 years?
Compound Interest II and TVM Solver
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June 02, 2015
Compound Interest
How long would it take to double a $5,000 investment that earns 4.5% interest compounded monthly?
Compound Interest II and TVM Solver
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There's a Better Way!
Compound Interest II and TVM Solver
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June 02, 2015
TVM Solver
A graphing calculator can do all of this financial work for us! It can even solve for n!
(You still need to be able to solve for A, P and i)
Compound Interest II and TVM Solver
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TVM Solver
Step 1: Open the TVM Solver.
Compound Interest II and TVM Solver
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TVM Solver
Step 2: Enter the variables. (NOTE: either PV or FV must be entered as negative!)
Years of InvestmentInterest Rate (%)
Principle (PV)
Final Amount (FV)
Number of Compounding Periods per Year
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TVM Solver
Step 3: Solve for a Missing Variable.
Highlight the variable you wish to solve for. Then
Compound Interest II and TVM Solver
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June 02, 2015
Exploring the Variables
Compound Interest II and TVM Solver
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June 02, 2015