5
Time Value of Money
The phrase time value of money describes calculations based on money earning interest over a period of time. The TVM menu performs
In compound interest calculations, interest is added to the principal at specified compounding periods, thereby also earning interest. Savings accounts, mortgages, and leases are
In simple interest calculations, the interest is a percent of the principal and is repaid in one lump sum. Simple interest calculations can be
done using the % key (page 40). For an example that calculates simple interest using an annual interest rate, see page 190.
The TVM Menu
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| FIN | BUS | SUM | TIME SOLVE CURRX | ||||
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| TVM | ICNV | CFLO | BOND | DEPRC | |||||
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N | I%YR | PV | PMT | FV | OTHER |
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P/YR | BEG | END |
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| AMRT |
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5: Time Value of Money 61
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