Finance App

Question 1

How do you get to the TVM solver?

Answer 1

Apps, Finance, TVM Solver

Question 2

What is N?

Answer 2

number of payment periods

IF there are recurring payments,
N= # of years times payments per year

IF there are no recurring payments,
N=# of years

Question 3

What is I%?

Answer 3

Interest rate (as a percent)

Question 4

What is PV?

Answer 4

Primary value (starting investment or value)

Question 5

When is PV positive?

Answer 5

When the cashflow is coming in (e.g., when you are taking out a loan)

Question 6

When is PV negative?

Answer 6

when the cashflow is going out (e.g., when you are investing money or depositing money into a savings account)

Question 7

What is PMT?

Answer 7

value of a regular payment

For example, if you have to pay $200 towards a loan each month, PMT = - 200

If no regular payments are mentioned, PMT=0

Question 8

What is P/Y?

Answer 8

payments per year (if repeated payments per year are not mentioned, type “1”).

Question 9

What is C/Y?

Answer 9

compounds per year

Question 10

compounded monthly

Answer 10

C/Y=12

Question 11

compounded yearly

Answer 11

C/Y=1

Question 12

compounded annually

Answer 12

C/Y=1

Question 13

compounded semi-annually

Answer 13

C/Y=2

Question 14

compounded quarterly

Answer 14

C/Y=4

Question 15

How do you solve for a missing value on TVM?

Answer 15

enter all the values you were given, then scroll to the value you are trying to find. Solve by pressing Alpha, Enter.