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