Question about Texas Instruments TI-30XA Calculator

# Present value of a loan

I'm working with an Attorney on Estate and we need to get the present vlaue on some notes owed by the deceased. There are two notes that were doen for 30 yrs no interest on both:
1). Loan amount \$48000 taken on 5-4-2
2). Loan amount \$54077 taken on 11-24-2

The estate does not have the money to pay in full, so were trying to come up with the present value to offer the lender.

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The present value of any future monthly (?) stream of payments stretching some 24 years into the future takes into account the time value of money and depends on the interest rate assumed to apply for each month throughout those 24 years.

There are formulae to calc this for an equal monthly payment and a constant interest rate, over the term but for a variable interest rate you need a spreadsheet.

In the simple case of zero interest assumed throughout the term, present value = current principal balance, but for any positive interest rate, the total present value of the future payment stream is less than the current principal balance.

Posted on Jan 01, 2009

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### Change in amortization of loans due to interest rate changes

Put in all of the other data (present and future value, etc). Put in the new interest rate and press the I/Y key. Press CPT then the N key to see the new number of periods.

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### I am trying to find a way to use my calculator and its financial functions but i have no idea how. i need the present value of \$1 and present value of annuity of \$1

Neely Neel Neel Neelerson,

--> APPS
--> TVM

Viola. The initials TVM stand for Time-Value-Money; it's a widely used tool throughout financial mathematics. If you are looking to deal with annuities, bonds, present value equations, future value equations, or even certain stocks then you will want to use the TVM app within your TI-84.

When you go into that menu screen you will see about 10 input lines; and despite how you're being taught you'd be best off using only five (from a mathematical & conceptual standpoint). The backbone of the TVM is the time-zero equation of value. So, all you want to be touching is the N, I/Y, PV, PMT, and FV keys.

Background on TVM:
N = Number of intervals
I/Y = Effective Interest Rate Per Interval (5% is .05 but the computer wants it entered as 5.0)
PV = The Present Value
PMT = Recurring Payment (either deposit or withdrawal)
FV = Future Value

There are like 3 other inputs that I encourage you to ignore (in exchange for learning exactly what's going on within this application).

NOTE: You MUST make your effective interest term match your number of intervals. For example, an annuity with monthly payments for 5 years with a monthly effective interest rate of 2% would need an N value of 60 (which is 12 months per year times 5 years for a total of 60 months).

There's more that could be said, but I think this should help you find the PV of an annuity.

Go Bulls,

The Math Cheetah
411@themathcheetah.com

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### Can not open safe, person who knew comb. recently passed away

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i think the bank will loan it for you but don't tell them what are you planning to do and try to ask cheat the bank and tell them your friend sell his his house in total of 180,000..the house is assessed for 185,000 right??gud luck..........

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