Education Technology

# Activities

• ##### Subject Area

• Math: Math General: General

9-12

60 Minutes

• ##### Device
• TI-83 Plus Family
• TI-84 Plus
• TI-84 Plus Silver Edition
• ##### Other Materials
This is Activity 8 from the EXPLORATIONS Book:
Time, Value, Money: Applications on the TI-83.

## 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