Time Value of Money
To input current data, enter a number followed by the TVM key for the required item. To calculate an unknown value, enter all known values and press the key of the item you want solved. For a TVM example, see Table
Table 4-3 TVM Keys
KeysDescription
N
Stores or calculates the number of payments or compounding periods (N).
^
Y
V
M
[
Multiplies a value by the number of payments per year and stores as N.
Stores or calculates the nominal annual interest rate as a percentage.
Stores or calculates the present value (PV). To a lender or borrower, PV is the amount of a loan; to an investor, PV is the initial investment. PV always occurs at the beginning of the first period.
Stores or calculates the dollar amount of each periodic payment (PMT). Payments can occur at the beginning or end of each compounding period.
Stores or calculates the number of payments or compounding periods per year.
43
