TVM and Amortization Worksheet Variables
|
Variable |
Key |
Display |
Type of Variable |
|
, |
N |
Enter-or-compute |
|
|
Interest rate per year |
- |
I/Y |
Enter-or-compute |
|
Present value |
. |
PV |
Enter-or-compute |
|
Payment |
/ |
PMT |
Enter-or-compute |
|
Future value |
0 |
FV |
Enter-or-compute |
|
Number of payments per year |
& [ |
P/Y |
Enter-only |
|
Number of compounding periods per year |
# |
C/Y |
Enter-only |
|
End-of-period payments |
& ] |
END |
Setting |
|
Beginning-of-period payments |
& V |
BGN |
Setting |
|
Starting payment |
& \ |
P1 |
Enter-only |
|
Ending payment |
# |
P2 |
Enter-only |
|
Balance |
# |
BAL |
Auto-compute |
|
Principal paid |
# |
PRN |
Auto-compute |
|
Interest paid |
# |
INT |
Auto-compute |
Note: This guidebook categorizes calculator variables by the method of entry. (See “Types of Worksheet Variables”).
Using the TVM and Amortization Variables
Because the calculator stores values assigned to the TVM variables until you clear or change them, you should not have to perform all steps each time you work a problem.
| • | To assign a value to a TVM variable, key in a number and press a TVM key (,, -, ., /, 0). |
| • | To change the number of payments (P/Y), press & [, key in a number, and press !. To change the compounding periods (C/Y), press & [ #, key in a number, and press !. |
| • | To change the payment period (END/BGN), press & ], and then press & V. |
| • | To compute a value for the unknown variable, press C, and then press the key for the unknown variable. |
| • | To generate an amortization schedule, press & \, enter the first and last payment number in the range (P1 and P2), and press " or # to compute values for each variable (BAL, PRN, and INT). |
Resetting the TVM and Amortization Worksheet Variables
| • | To reset all calculator variables and formats to default values (including TVM and amortization variables), press & } !: |
|
Variable |
Default |
Variable |
Default |
|
N |
0 |
END/BGN |
END |
|
I/Y |
0 |
P1 |
1 |
|
PV |
0 |
P2 |
1 |
|
PMT |
0 |
BAL |
0 |
|
FV |
0 |
PRN |
0 |
|
P/Y |
1 |
INT |
0 |
|
C/Y |
1 |
|
|
| • | To reset only the TVM variables (N, I/Y, PV, PMT, FV) to default values, press & ^. |
| • | To reset P/Y and C/Y to default values, press & [ & z. |
| • | To reset the Amortization worksheet variables (P1, P2, BAL, PRN, INT) to default values, press & z while in the Amortization worksheet. |
| • | To reset END/BGN to the default value, press & ] & z. |
Clearing the Unused Variable
For problems using only four of the five TVM variables, enter a value of zero for the unused variable.
For example, to determine the present value (PV) of a known future value (FV) with a known interest rate (I/Y) and no payments, enter 0 and press PMT.
Entering Positive and Negative Values for Outflows and Inflows
Enter negative values for outflows (cash paid out) and positive values for inflows (cash received).
Note: To enter a negative value, press S after entering the number. To change a negative value to positive, press S.
Entering Values for I/Y, P/Y, and C/Y
| • | Enter I/Y as the nominal interest rate. The TVM worksheet automatically converts I/Y to a per period rate based on the values of P/Y and C/Y. |
| • | Entering a value for P/Y automatically enters the same value for C/Y. (You can change C/Y.) |
Specifying Payments Due With Annuities
Use END/BGN to specify whether the transaction is an ordinary annuity or an annuity due.
| • | Set END for ordinary annuities, in which payments occur at the end of each payment period. (This category includes most loans.) |
| • | Set BGN for annuities due, in which payments occur at the beginning of each payment period. (This category includes most leases.) |
Note: When you select beginning-of-period payments, the BGN indicator appears. (No indicator appears for END payments.)
Updating P1 and P2
To update P1 and P2 for a next range of payments, press C with P1 or P2 displayed.
Different Values for BAL and FV
The computed value for BAL following a specified number of payments might be different than the computed value for FV following the same number of payments.
| • | When solving for BAL, PRN, and INT, the calculator uses the PMT value rounded to the number of decimal places specified by the decimal format. |
| • | When solving for FV, the calculator uses the unrounded value for PMT. |
Entering, Recalling, and Computing TVM Values
| • | To enter a TVM value, key in the value and store it by pressing a TVM key (,, -, ., /, 0). |
| • | To display a stored TVM value, press J and a TVM key. |
You can enter or recall a value for any of the five TVM variables (N, I/Y, PV, PMT, or FV) in either the standard calculator mode or a worksheet mode. The information displayed depends on which mode is selected.
| • | In standard calculator mode, the calculator displays the variable label, the = sign, and the value entered or recalled. |
| • | In worksheet modes the calculator displays only the value you enter or recall, although any variable label previously displayed remains displayed. |
Note: You can tell that the displayed value is not assigned to the displayed variable, because the = indicator is not displayed.
To compute a TVM value, press C and a TVM key in standard-calculator mode.
Using [xP/Y] to Calculate a Value for N
| 1. | Key in the number of years, and then press & Z to multiply by the stored P/Y value. The total number of payments appears. |
| 2. | To assign the displayed value to N for a TVM calculation, press ,. |