Education Technology

Solution 11724: Computing Nominal and Effective Interest Rates on the TI-83 Family, TI-84 Plus Family, Or TI-Nspire™ Handheld In TI-84 Plus Mode.

How do I compute the nominal and effective interest rates on a TI-83 family, TI-84 Plus family, or TI-Nspire handheld in TI-84 Plus mode?

The examples below will demonstrate how to calculate nominal and effective interest rates on a TI-83 family, TI-84 Plus family, or TI-Nspire handheld in TI-84 Plus mode.

Use the >Nom() function to compute the nominal interest rate. The syntax for this function is >Nom(effective rate, compounding periods).

Use the >Eff() function to compute the effective interest rate. The syntax is >Eff(nominal rate,compounding periods).

To access these functions, press [APPS] [ENTER],(on the TI-83, press [2nd] [FINANCE]), and select B:>Nom( or C:>Eff(.

Example:

Find the nominal rate of 25 effective rate with 2 compounding periods.

1) Press [APPS] [1]  or [2ND] [FINANCE] on the TI-83.
2) Press [ALPHA] [B].
3) Press [(] [2] [5] [,] [2] [)].
4) Press [ENTER].
The result is 23.60679775.

Find the effective rate of 8 with 12 compounding periods:

1) Press [APPS] [1] or [2ND] [FINANCE] on the TI-83.
2) Press [ALPHA] [C].
3) Press [(] [8] [,] [1] [2] [)].
4) Press [ENTER].
The result is 8.299950681.

Please see the TI-83 Plus Family and TI-84 Plus Family guidebooks for additional information.

TI-Nspire handheld in TI-84 Plus mode users may refer to the TI-84 Plus family guidebook.