Tag PV

TI 83 and TI 83 Plus Tutorial, Part II

Part 2 of a TI-83 calculator tutorial on calculating money value over time. It covers how to find present and future values of annuities (regular payments) and lump sums using the built-in TVM Solver app. The tutorial explains different annuity types (regular and due) and how to solve for missing variables like payment amount, interest rate, or number of periods. It also touches on perpetuities (infinite payments) and how to approximate their present value with the calculator.

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 III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and annuities. In this section we will take a look at how to use the HP 19BII to calculate the present and future values of uneven cash flow streams. We will also…

HP 19BII Tutorial, Part II

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums. In this section we will take a look at how to use the HP 19BII to calculate the present and future values of regular annuities and annuities due. A regular annuity is…

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 – Present Value of Regular Annuities

In the previous tutorial, we saw how to calculate the future value of an annuity. Here, we will instead find the present value of a regular annuity. There are many examples where you might want to find the present value of an annuity: A regular annuity is simply an annuity where the first payment is made at the end of…

Loan Amortization on the HP 10BII+

In this tutorial we will see how to amortize a fixed-rate loan using the HP 10BII+ calculator from Hewlett Packard. Specifically, we will see how to calculate the amount of principal and interest for any particular payment, or range of payments. For example, you may wish to know how much your principal or interest payments will be for the first…

HP 12C Tutorial, Part III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and annuities. In this section we will take a look at how to use the HP 12C to calculate the present and future values of uneven cash flow streams. We will also…

Make-whole Call Provisions on the HP 20b Financial Calculator

This article explains how to calculate the call price of a bond with a make-whole call provision using the HP 20b calculator.

Make-whole call provision is beneficial to investors because they get the present value of all remaining cash flows if the bond is called early. The calculation considers the coupon rate, maturity date, and a discount rate based on a Treasury security.

The article provides a step-by-step guide for calculating the call price using both the Time Value of Money (TVM) keys and the Net Present Value (NPV) function on the HP 20b calculator.

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…

Make-whole Call Provisions in Excel

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Annuity Due Formulas

These are the main formulas that are needed to work with regular annuity cash flows (Definition/Tutorial). Please note that these formulas work only on a payment date, not between payment dates. This is the same restriction used (but not stated) in financial calculators and spreadsheet functions. I use MathJax to display these formulas. You can click the equations to show…

Regular Annuity Formulas

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:…

Loan Amortization on the HP 20b

This tutorial explains how to amortize a fixed-rate loan using the HP 20b financial calculator. It guides users on calculating the principal and interest for individual payments or a range of payments. The article demonstrates using the calculator’s built-in functions to break down loan payments into principal and interest components and how to determine the remaining balance after each payment. Additionally, it briefly compares this method with using a spreadsheet for creating a full amortization schedule, highlighting the limitations and practical applications of the HP 20b calculator's amortization functions.