Education Technology

Solution 34832: Calculating the Present Value of an Annuity on a TI-84 Plus C Silver Edition.

How do I calculate the present value of an annuity on a TI-84 Plus C Silver Edition?

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].
• Press 1:Finance.
• Press 1:TVM Solver.
• Press [1] [0] [↓] [9] [↓] [0] [↓] [5] [0] [0] [0] [↓] [0] [↓] [1] [↑].

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

The present value is $-32,088.29.

Please see the TI-84 Plus C Silver Edition guidebook for additional information.