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 compound-interest calculations and calculates (and prints) amortization schedules.

„In compound interest calculations, interest is added to the principal at specified compounding periods, thereby also earning interest. Savings accounts, mortgages, and leases are compound-interest calculations.

„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

 

 

 

 

 

 

FIN

BUS

SUM

TIME SOLVE CURRX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TVM

ICNV

CFLO

BOND

DEPRC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N

I%YR

PV

PMT

FV

OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

P/YR

BEG

END

 

 

 

 

AMRT

 

 

5: Time Value of Money 61

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9