Texas Instruments TI-89 Voyage 200, User Manual

Page: 771 / 1008

Activities 771
Finding the Future Value of an Annuity
Finding the Future Value of an Annuity Finding the Future Value of an Annuity
Finding the Future Value of an Annuity
Find the future value of an annuity using the values from the previous example where
the interest rate is 14%.
Computing the Time-Value-of-Money Computing the Time-Value-of-Money Computing the Time-Value-of-Money Computing the Time-Value-of-Money
This activity creates a function that can be used to find the cost of financing an item.
Detailed information about the steps used in this example can be found in the electronic
chapter
Programming , which is available from the TI Web site at education.ti.com and on
the CD in this package.
Time-Value-of- Money Function Time-Value-of- Money Function Time-Value-of- Money Function Time-Value-of- Money Function
In the Program Editor, define the following Time-Value-of-Money (
tvm
) function where
temp1
= number of payments,
temp2
= annual interest rate,
temp3
= present value,
temp4
= monthly payment,
temp5
= future value, and
temp6
= begin- or end-of-payment
Enter the equation to solve for
s
.
solve(s=p
†
(1+i)^n,s) | i=.14
and
p=1000
and
n=6
Result: The future value at 14% interest is
2,194.97.