TI-84 Plus CE field manual for IB Math
Using the finance (TVM) solver
Enter a loan or savings scenario into the finance / TVM solver with the correct cash-flow signs, then solve for any one unknown: payment, term, rate, or future value.
A car loan of $24,000 is repaid monthly over 5 years at 6.5% nominal annual interest, compounded monthly. Find the monthly payment.
Open the finance solver: press , choose Finance, then choose TVM Solver.
Enter the loan values: N = 60 because there are 5×12 monthly payments, I% = 6.5, PV = 24000, FV = 0, P/Y = 12, and C/Y = 12.
Move the cursor to PMT (the field you are solving for is left blank), then press (SOLVE). Signs follow the cash-flow convention: money you receive is positive and money you pay out is negative. You receive the $24,000 loan (PV positive) and repay it, so the solver returns a negative PMT. The same steps solve for any single unknown: leave it blank and solve for the term, rate, or future value instead.
PMT≈−469.59, so the monthly payment is $469.59.
Your turn
Work each one on your calculator, then check the answer.
- 1
A $12,000 loan is repaid with monthly payments of $250 at 8.4% nominal annual interest, compounded monthly. How many monthly payments does it take to clear the loan?
- 2
A $16,000 car loan is repaid with 60 monthly payments of $320, compounded monthly. What nominal annual interest rate is being charged?
- 3
You deposit $200 at the end of each month into an account paying 4.8% nominal annual interest, compounded monthly, for 6 years. How much is in the account at the end?