Education Technology

Solution 21830: Calculating the Present Value of an Annuity on a TI-83 Family, TI-84 Plus Family, or TI-Nspire™ Handheld in TI-84 Plus Mode.

How do I calculate the present value of an annuity on a TI-83 family, TI-84 Plus family, or TI-Nspire handheld in TI-84 Plus mode?

A regular annuity is a series of equal cash flows occurring at equally spaced time periods. In a regular annuity, the first cash flow occurs at the end of the first period.

Please see the below example:

Suppose that a client is offered an investment that will pay $5,000 per year for 10 years. If the client can earn a rate of 9% per year on similar investments, how much should the client be willing to pay for this annuity?

To calculate above example please follow steps listed below:

• First, access the TVM solver by pressing [APPS] [ENTER] [ENTER]. On the TI-83, press [2nd] [FINANCE] [ENTER].
• Next press [Clear] [1] [0] [↓] [Clear] [9] [↓] [↓] [Clear] [5] [0] [0] [0] [↓] [Clear] [0] [↓] [Clear] [1] [↑]

Next press [↑] [↑] [ALPHA] [SOLVE] to calculate the present value:

The present value is $-32,088.29.

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

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