1. Home and Car Leasing and Buying
TVM Solver Day 1
Home and Car Leasing and Buying

2. TVM Solver
APPS
1: Finance (ENTER)
1: TVM Solver (ENTER)

3. TVM Solver N= Total number of compounding/ payment periods,
(years x compounds per year)
I%=
Interest as a percentage (APR)
PV=
Present Value (Principal), initial amount
PMT=
Payment, $ paid each compounding period
FV=
Future Value, (always opposite sign of PV)
P/Y=
Payments/Year
C/Y=
Compounds/Year
(1 – annually, 2 - semi-annually, 4 – quarterly, 12 – monthly,
52 – weekly, 365 – daily)
PMT:
When the payment is made during the compounding period. (END or BEGIN)

4. Example #1
Find the future value of a $7,000 investment, compounded annually for 20 years at 4.25% interest. N= 20
I%=
4.25
PV=
-7000
PMT=
FV=
P/Y= 1
C/Y=
PMT:
end
ALPHA
ENTER

5. Example #1
Find the future value of a $7,000 investment, compounded annually for 20 years at 4.25% interest. N= 20
I%=
4.25
PV=
-7000
PMT=
FV=
P/Y= 1
C/Y=
PMT:
end

6. Example #2
Find the present value of an investment that pays 7.32% interest over 10 years compounded monthly. If its future value is $10,000. N=
10*12
I%=
7.32
PV=
PMT=
FV=
10000
P/Y= 12
C/Y=
PMT:
end
ALPHA
ENTER

7. Example #2
Find the present value of an investment that pays 7.32% interest over 10 years compounded monthly. If its future value is $10,000. N=
10*12
I%=
7.32
PV=
PMT=
FV=
10000
P/Y= 12
C/Y=
PMT:
end

8. Example 1
N =
360
I% =
3.5
PV =
PMT =
FV =
P/Y = 12
C/Y =
PMT:
END
If Susan buys a house for $150,000 with an interest rate of 3.5% compounded monthly for thirty years. What would be her monthly payments?

9. Example 1
If Susan buys a house for $150,000 with an interest rate of 3.5% compounded monthly for three years. What would be her monthly payments?
N =
372
I% =
3.5
PV =
PMT =
673.57
FV =
P/Y = 12
C/Y =
PMT:
END

10. Compound Interest Examples
What will the monthly payment be if you bought a car for 48 months with a present value of $45,000, you make a down payment of $6,000 and get an interest rate of 2.5%?
N=48
I%=2.5
PV= -45,000
PMT=
FV= 0
P/Y=12
C/Y=12
PMT:END

11. Compound Interest Examples
What will the monthly payment be if you lease a car for 24 months with a present value of $28,000 and a car value of $10,000 after the two years given that the dealer charges a leasing fee of 5.4%?
N=24
I%=5.4
PV= -28,000
PMT=
FV= 10,000
P/Y=12
C/Y=12
PMT:END