Activity Detail

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Present Value of an Ordinary Annuity
 


Activity Overview

In this activity, students carry out financial computations to find out how much money should be deposited today so that a fixed amount can be drawn at regular intervals. These calculations involve determination of the present value of annuity.

Before the Activity

  • Select TVM Solver or tvm_PV function on the calculator menu
  • See the attached activity PDF file for detailed instructions for this activity
  • Print pages 20-21 from the attached PDF file for your class


  • During the Activity

    Distribute the pages to the class.

    Follow the Activity procedures:
  • Calculate the amount to be invested today that allows a specified monthly payment using N, I%, FV, PMT, P/Y, and C/Y values
  • Find the cash price given the down payment, monthly payment, and finance charges compounded monthly


    After the Activity

    Review student results:
  • As a class, discuss questions that appeared to be more challenging
  • Re-teach concepts as necessary


    Other Downloads




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    Subject Area:
    Math : Math General : General

    Author:
    Texas Instruments

    Level:
    9-12

    Activity Time:
    60 Minutes

    Device:
    TI-83 Plus Family, TI-84 Plus Family

    Apps:
    Finance

    Software:
     

    Accessories:
     

    Other:
    This is Activity 8 from the EXPLORATIONS Book:
    Time, Value, Money: Applications on the TI-83.



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