Finding the Future Value of an Annuity
Find the future value of an annuity using the values from the previous example where
the interest rate is 14%.
Enter the equation to solve for
solve(s=p
(1+i)^n,s) | i=.14
†
n=6
Result: The future value at 14% interest is
2,194.97.
Computing the Time-Value-of-Money
This activity creates a function that can be used to find the cost of financing an item.
Detailed information about the steps used in this example can be found in Programming.
Time-Value-of- Money Function
In the Program Editor, define the following Time-Value-of-Money (
= number of payments,
temp1
= monthly payment,
temp4
Activities
.
s
and
and
p=1000
= annual interest rate,
temp2
= future value, and
temp5
) function where
tvm
= present value,
temp3
= begin- or end-of-payment
temp6
750