what's going on? · how long would it take to double a $5,000 ... final amount (fv) number of...
TRANSCRIPT
![Page 1: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/1.jpg)
Compound Interest II and TVM Solver
1
June 02, 2015
What's Going On?
Learning Goal I will be able to determine the "Present Value" of compound interest investments.
Present Value
The TVM Solver
Exploring the Variables
![Page 2: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/2.jpg)
Compound Interest II and TVM Solver
2
June 02, 2015
LGL
You decide to invest $5,000 at 2.5%. What is your investment worth after 6 years if it earns
a. Simple Interest?
![Page 3: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/3.jpg)
Compound Interest II and TVM Solver
3
June 02, 2015
LGL
You decide to invest $5,000 at 2.5%. What is your investment worth after 6 years if it earns
b. Compound Interest, compounded monthly?
![Page 4: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/4.jpg)
Compound Interest II and TVM Solver
4
June 02, 2015
Present Value
How much would you need to invest today, in an investment earning 5% interest compounded quarterly, to have $10,000 in 5 years?
![Page 5: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/5.jpg)
Compound Interest II and TVM Solver
5
June 02, 2015
Present ValueHow much would you need to invest today, in an investment earning 5% interest compounded quarterly, to have $10,000 in 5 years?
![Page 6: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/6.jpg)
Compound Interest II and TVM Solver
6
June 02, 2015
Compound Interest
How long would it take to double a $5,000 investment that earns 4.5% interest compounded monthly?
![Page 7: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/7.jpg)
Compound Interest II and TVM Solver
7
June 02, 2015
There's a Better Way!
![Page 8: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/8.jpg)
Compound Interest II and TVM Solver
8
June 02, 2015
TVM Solver
A graphing calculator can do all of this financial work for us! It can even solve for n!
(You still need to be able to solve for A, P and i)
![Page 9: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/9.jpg)
Compound Interest II and TVM Solver
9
June 02, 2015
TVM Solver
Step 1: Open the TVM Solver.
![Page 10: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/10.jpg)
Compound Interest II and TVM Solver
10
June 02, 2015
TVM Solver
Step 2: Enter the variables. (NOTE: either PV or FV must be entered as negative!)
Years of InvestmentInterest Rate (%)
Principle (PV)
Final Amount (FV)
Number of Compounding Periods per Year
![Page 11: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/11.jpg)
Compound Interest II and TVM Solver
11
June 02, 2015
TVM Solver
Step 3: Solve for a Missing Variable.
Highlight the variable you wish to solve for. Then
![Page 12: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/12.jpg)
Compound Interest II and TVM Solver
12
June 02, 2015
Exploring the Variables
![Page 13: What's Going On? · How long would it take to double a $5,000 ... Final Amount (FV) Number of Compounding Periods per Year. Compound Interest II and TVM Solver 11 June 02, 2015 TVM](https://reader034.vdocument.in/reader034/viewer/2022050104/5f42c0225ba0434d0f7181fe/html5/thumbnails/13.jpg)
Compound Interest II and TVM Solver
13
June 02, 2015