Question about Texas Instruments TI-30XA Calculator

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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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If I know how much the payment is and the length of the loan how can I calculate the percentage I am paying?


A=P((1-(1+r)^(-n))/r, where A is the present value of the annuity, or the amount of the loan, P is the periodic payment, r is the interest rate per period, and n is the number of periods. In this case, I assume the payments are monthly, so n would be 36. You mentioned that you already have A and P. However, solving for r algebraically is not that easy because it is in two places on the right hand side. However, you can make a table and put in interest rates to make both sides equal. Remember to multiply this answer by 12 to get the annual interest rate.

For example, if the payment is $100, and the amount of the loan is $2,766.07, and the number of periods is 36, what is the interest rate.

r Calculate Actual Difference
0.010 3010.75 2766.07 -244.68
0.011 2959.42 2766.07 -193.35
0.012 2909.33 2766.07 -143.26
0.013 2860.42 2766.07 -94.35
0.014 2812.68 2766.07 -46.61
0.015 2766.07 2766.07 0.00
0.016 2720.55 2766.07 45.52
0.017 2676.11 2766.07 89.96

You can see from the chart that the value of r of 0.015 makes the difference 0, so the periodic interest rate is 0.015 or 1.5%. We need to annualize this by multiplying by 12 and we get an annual interest rate of 18%.

Good luck,

Paul






Annuity Payment PV

Aug 15, 2016 | Calculators

1 Answer

How to Calculate NPV?


NPV stands for Net Present Value. Using this scientific calculator, you must utilize a formula to calculate net present value.

For example, if we want to find out what the net present value of $10,000 is using a 4% annual interest rate for 10 years. In other words, what amount do we have to invest today for 10 years assuming we get a 4% annual interest rate.

NPV=10,000(1+0.04)^-10

To do the exponent, use the ^ key.

Good luck.

Paul

Feb 26, 2016 | Texas Instruments Ti 30x Iis Scientific...

1 Answer

What is the percentage increase of $10,000 at 4.5% over 30 years


Real estate values decrease; unless you make major improvements.

Sep 10, 2015 | Calculators

1 Answer

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.

Jan 03, 2013 | Texas Instruments BA-II Plus Calculator

1 Answer

I need to calculate the monthly payment of a car worth $18000 w/o tax, 1.9% intrest / year compounded monthly for 5 years...how do i set up the equation?


Press the APPS key, select the Finance app, and then TVM_Solver.

For N, enter 5 * 1 2 for 5 monthly payments.
For I%, enter 1 . 9 / 1 2 for the monthly interest rate.
For PV, enter 1 8 0 0 0 for the present value of the loan.
Make sure "END" is highlighted on the bottom line.
Move the cursor to the "PMT" line and press ALPHA ENTER to compute the monthly payment. You'll get a negative number since this represents something you pay out.

Apr 03, 2011 | Texas Instruments TI-83 Plus Calculator

1 Answer

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

Mar 13, 2011 | Texas Instruments TI-84 Plus Calculator

1 Answer

Future &present value


That depends on the interest rate.

2nd [CLR TVM] (clear previous data)
5 0 0 0 PMT (monthly payment)
2 0 2nd [*P/Y] N (20 years of monthly payments)
annual interest rate I/Y (annual interest rate)
CPT PV (compute present value)

At 10% it's about $518,000

May 26, 2010 | Texas Instruments BA-II Plus Calculator

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