Question about Texas Instruments TI-84 Plus Calculator

# Tvm_I% I am trying to find the interest rate given the present value, future value and years. The manual says [(N,PV,PMT,FV,P/Y,C/Y)] What does P/Y and C/Y mean. I do not know what data to input.

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• Anonymous Nov 10, 2008

p/y is payments per year and c/y is compounding periods in the year. If you are NOT making monthly payments [where p/y would be 12] to an account or loan then p/y and c/y are the same. So, go by the compounding in the question --- Monthly [12], semi-monthly [24], bi-weekly [26], etc...

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I'm going to make up an example so this is easier to answer.

Ex: You have a bond with a price of \$987, with a coupon of 1.5%, which matures in 10 years.
To do this problem:

[APPS] [1] [1]

What comes up on screen:

N=
I%=
PV=
PMT=
FV=
This is all the stuff that you really care about.

Now, add in the info you know from the equation. Put in a 0 if you don't know the number for that part.

This is what it should look like:
N=10
I%=0
PV=-987
PMT=15
FV=1000

Now, cursor back up to the I%=0 part.
Highlight the '0' that you had in there from before.
[ALPHA] [ENTER] ----> notice above the enter button it says in green lettering "solve", this is what you are trying to do.

Yay! Your caluculator has now figured out the interest rate!
it should say:
I%=1.642027191

Notes:
1. Make sure your payment is set at the end of the period (this is just the standard so you probably don't want to mess with it.) Scroll down to the PMT: END BEGIN part and make sure the END is highlighted.

2. This example used annual coupon payments. The p/y and c/y business is used for when you have semi-annual payments or semi-annual compounding (or daily, or hourly etc). You can use this feature, or you can just adjust the payment and periods
(ie: if this were a semi-annual coupon bond, the N would be 20 and the pmt would be 7.5)

Posted on Apr 30, 2009

• lemondrop110 Apr 30, 2009

oh yeah I also forgot to mention

Note 3.
Make sure you have a sign change between the PV and FV (notice how in my example the PV is a negative number because you have to pay out that much money to buy the bond).

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Posted on Jan 02, 2017

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