Tag Lump Sums

TI 83 and TI 83 Plus Tutorial, Part I

This is the first part of a TI-83 calculator tutorial on performing time value of money calculations. It covers finding future and present values of lump sums using the built-in TVM Solver app. The tutorial explains how to enter data considering the calculator's cash flow sign convention and solve for missing variables like the number of periods or interest rate. It also teaches how to adjust the calculator's decimal places for better viewing.

HP 19BII Tutorial, Part I

The HP 19B is a fairly easy to use financial calculator that will serve you well in all finance courses. The 19BII can operate in either RPN (reverse polish notation) or algebraic modes. RPN is better in most cases, so I suggest that you choose that mode if you understand RPN. This tutorial will demonstrate how to use the financial…

Time Value of Money – Solving for i and N for Lump Sum Cash Flows

In the previous sections, we have seen how to calculate present values and future values of lump sum cash flows. However, in many cases you may need to solve for the number of periods or the interest rate. The purpose of this section is to show exactly how to do that. It is important to remember that we are using…

Time Value of Money – Present Value of Lump Sums

On the previous page, you learned everything that you will ever need to know in order to solve time value of money problems! That’s quite a bold statement, but it is true. The key is that we derived the basic time value of money formula: $$F{V_N}=PV(1+i)^N$$ From that formula, we can easily derive other formulas for solving for any of…

Lump Sum Formulas

These are the main formulas that are needed to work with lump sum cash flows (Definition/Tutorial). I use MathJax to display these formulas. You can click the equations to show a zoomed version in a pop-up, or right-click on the formulas for additional options (e.g., to copy the equation as $\TeX$ or to choose the zoom settings). To Solve For:…

Time Value of Money – Future Value of Lump Sums

The most basic type of cash flow is a lump sum. That is, a single cash flow that occurs at a single point in time. Despite its simplicity, the lump sum cash flow is the bedrock upon which all other types of cash flows are built. According to the principal of value additivity, every type of cash flow stream can…

HP 10BII+ Tutorial, Part I

If the picture at right doesn’t match your calculator, you may have an original HP 10B or HP10BII (not the + version). These calculators differ slightly, so you may prefer the HP 10B tutorial. The Hewlett Packard 10BII+ is a very easy to use financial calculator that will serve you well in all finance courses. This tutorial will demonstrate how…

HP 17BII Tutorial, Part I

The HP 17B is a fairly easy to use financial calculator that will serve you well in all finance courses. The 17BII can operate in either RPN (reverse polish notation) or algebraic modes. RPN is better in most cases, so I suggest that you choose that mode if you understand RPN. This tutorial will demonstrate how to use the financial…

Microsoft Excel as a Financial Calculator, Part I

Excel (and other spreadsheet programs) is the greatest financial calculator ever made. There is more of a learning curve than a regular financial calculator, but it is much more powerful. This tutorial will demonstrate how to use Excel’s financial functions to handle basic time value of money problems using the same examples as in the calculator tutorials. I will keep…

HP 12C Tutorial, Part I

The HP 12C is a fairly easy to use financial calculator that will serve you well in all finance courses. Actually, its very easy if you already know RPN (reverse polish notation — a much better way to enter data into a calculator than the algebraic method that you are probably familiar with). This tutorial will demonstrate how to use…

HP 20b Tutorial, Part I

The Hewlett Packard 20b Business Consultant is an easy to use, and inexpensive, financial calculator that will serve you well in all finance courses. This tutorial will demonstrate how to use the financial functions to handle time value of money problems and make financial math easy. I will keep the examples rather elementary, but understanding the basics is all that…

TI 84 Plus Tutorial, Part I

This is the first part of a TI-83 calculator tutorial on performing time value of money calculations. It covers finding future and present values of lump sums using the built-in TVM Solver app. The tutorial explains how to enter data considering the calculator's cash flow sign convention and solve for missing variables like the number of periods or interest rate. It also teaches how to adjust the calculator's decimal places for better viewing.

TI BAII Plus Tutorial, Part I

This article focuses on handling lump sum cash flows using the TI BAII Plus financial calculator. It begins with setup instructions, recommending annual compounding and adjusting decimal places. The tutorial covers calculating the future value, present value, number of periods, and interest rates for lump sums. Emphasizing correct data entry and understanding financial principles, the article aims to equip readers with the fundamental skills needed to effectively use the calculator for finance courses and real-world applications. It also highlights the importance of adhering to the cash flow sign convention.

TI BAII Plus Pro Tutorial, Part I

This article focuses on handling lump sum cash flows using the TI BAII Plus financial calculator. It begins with setup instructions, recommending annual compounding and adjusting decimal places. The tutorial covers calculating the future value, present value, number of periods, and interest rates for lump sums. Emphasizing correct data entry and understanding financial principles, the article aims to equip readers with the fundamental skills needed to effectively use the calculator for finance courses and real-world applications. It also highlights the importance of adhering to the cash flow sign convention.

HP 10B Tutorial Part I

If the picture at right doesn’t match your calculator, you may have the newer HP 10BII. These calculators differ slightly, so you may prefer the HP 10BII tutorial (it doesn’t matter too much). The Hewlett Packard 10B is a very easy to use financial calculator that will serve you well in all finance courses. This tutorial will demonstrate how to…