Activity Overview
In this activity, students carry out financial computations, involving annuity, and the future value of annuities. Students also deal with computations involving sinking funds.
Before the Activity
Select TVM Solver from the calculator menu
See the attached activity PDF file for detailed instructions for this activity
Print page 17-19 from the attached PDF file for your class
During the Activity
Distribute the pages to the class.
Follow the Activity procedures:
Calculate the future value of an annuity using N, I%, PV, PMT, P/Y, and C/Y values
Calculate the monthly payments to be made to generate a specified future yield using N, I%, PV, FV, P/Y, and C/Y values
Calculate the future value of deposits made quarterly using N, I% (compounded quarterly), PV, PMT, P/Y, and C/Y values
Calculate the amount accumulated in a sinking fund that earns interest compounded monthly
Calculate the monthly payments to be made into a sinking fund to accumulate a specific value in a certain period of time
After the Activity
Review student results:
As a class, discuss questions that appeared to be more challenging
Re-teach concepts as necessary