Time Value of Money
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To input current data, enter a number followed by the TVM key for the required
item. To calculate an unknown value, enter all known values and press the key of
the item you want solved. For a TVM example, see Table 4-4.
Table 4-3 TVM Keys
Keys Description
N
Stores or calculates the number of payments or
compounding periods (N).
^
Multiplies a value by the number of payments per year and
stores as N
.
Y
Stores or calculates the nominal annual interest rate as a
percentage.
V
Stores or calculates the present value (PV). To a lender or
borrower, PV is the amount of a loan; to an investor, PV is
the initial investment. PV always occurs at the beginning of
the first period.
M
Stores or calculates the dollar amount of each periodic
payment (PMT). Payments can occur at the beginning or
end of each compounding period.
[
Stores or calculates the number of payments or
compounding periods per year.
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