This instructional worksheet covers the use of the TVM Solver and construction and interpretation of Amortisation Tables. Students can see the impact of additional repayments early in a mortgage by using a combination of the TVM Solver and the Amortisation Table.
- Enter values into the Finance Solver (TVM)
- Generate an Amortisation Table
- Use values from an Amortisation Table to check progress
- Understand the impact of additional repayments
- Principal Value (PV)
- Future Value (FV)
- Interest Rate (I)
- Payments Per Year (PpY)
- Compounding Periods Per Year (CpY)
About the Lesson
Students use the TVM Solver to compute repayments on a loan then explore that rate at which the loan is being repaid via the Amortisation table. The opportunity to explore variations in loan repayments allows students to see how small increments early in the repayment scheme can provide significant financial gain by the end of the mortgage.