Chapter 14: Applications 390
Note: Because there are no payments when you solve compound interest problems,
PMT must be set to 0 and P/Y must be set to 1.
1. Press Œ Í to select 1:Finance from the
APPLICATIONS menu.
2. Press Í to select 1:TVM Solver from the CALC
VARS menu. The TVM Solver is displayed. Press 7 to
enter the number of periods in years. Press ††
Ì1250 to enter the present value as a cash outflow
(investment). Press †0 to specify no payments. Press
† 2000 to enter the future value as a cash inflow
(return). Press †1 to enter payment periods per year.
Press †12 to set compounding periods per year to 12.
3. Press } } } } } to place the cursor on the æ
prompt.
4. Press ƒ \ to solve for æ, the annual interest
rate.