Time Value of Money
42
Table 4-2 Interest Rate Conversion Example
Keys Display Description
>
Scrolls to payments per year,
P/YR
.
Default value is
12
.
365
I
Inputs
365
as the current value for the
number of compounding periods or
payments per year.
>=
Scrolls to the variable for the effective
rate,
Eff%=
.
A 36.5% nominal rate compounded
daily equals an effective rate of
44.03%.
TVM Keys and Entering Values
For a list of keys used for TVM problems along with their descriptions, see Table
4-3.
To reset the TVM variables to their default values, with any TVM variable
displayed, press :x. With
TVM
displayed, press I. At the
TVM
Reset
prompt, press I or O.
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