Finance app
133
Cash flow diagrams
TVM transactions can be represented by using
cash flow
diagrams
. A cash flow diagram is a time line divided into
equal segments representing the compounding periods.
Arrows represent the cash flows, which could be positive
(upward arrows) or negative (downward arrows),
depending on the point of view of the lender or borrower.
The following cash flow diagram shows a loan from a
borrower's
point of view:
The following cash flow diagram shows a loan from the
lender's
point of view:
Present value (PV)
(Loan)
Money
received is
a positive
number
Money
paid out is
a negative
number
Equal periods
1
2
3
4
5
(PMT)
Future value
(FV)
Equal payments
Payment
(PMT)
Payment
(PMT)
Payment
(PMT)
Payment
(PMT)
}
}
}
}
}
Cash flow diagrams
also specify
when
payments occur rela-
tive to the compound-
ing periods.The
diagram to the right
shows lease pay-
ments at the
begin-
ning
of the period.
This diagram shows
deposits (PMT) into an
account at the end of
each period.
PV
1
2
3
4
5
FV
Capitalized
value of
lease
}
PMT
PMT
PMT
PMT
PMT
PV
1
2
3
4
5
FV
PMT
PMT
PMT
PMT
PMT
Summary of Contents for 39gII
Page 1: ...HP 39gII graphing calculator user s guide Edition1 Part Number NW249 90001 ...
Page 2: ...Printing History Edition 1 November 201 1 ...
Page 32: ...22 Getting started ...
Page 58: ...48 Apps and their views ...
Page 70: ...60 Function app ...
Page 80: ...70 Solve app ...
Page 136: ...126 Polar app ...
Page 140: ...130 Sequence app ...
Page 148: ...138 Finance app ...
Page 152: ...142 Linear Solver app ...
Page 218: ...208 Matrices ...
Page 226: ...216 Notes and Info ...
Page 238: ...228 Variables and memory management ...
Page 318: ...308 Programming ...
Page 340: ...330 Reference information ...
Page 346: ...vi Product Regulatory Information ...