Texas Instruments TI-83 - Getting Started: Computing Compound Interest

Financial Functions 14-3
8314FINA.DOC TI-83 international English Bob Fedorisko Revised: 02/19/01 12:50 PM Printed: 02/19/01 1:38 PM
Page 3 of 14
At what annual interest rate, compounded monthly, will 1,250 accumulate to
2,000 in 7 years?
Note:
Because there are no payments when you solve compound interest problems,
PMT
must be set to
0
and
P/Y
must be set to
1
.
1. Press
y
[
FINANCE
] to display the
FINANCE CALC
menu.
2. Press
Í
to select
1:TVM Solver
. Press
7
to enter the number of periods in years.
Press
† † Ì
1250
to enter the present
value as a cash outflow (investment).
Press
†
0
to specify no payments. Press
†
2000
to enter the future value as a cash
inflow (return). Press
†
1
to enter
payment periods per year. Press
†
12
to
set compounding periods per year to
12
.
3. Press
} } } } }
to place the cursor on
the
æ
prompt.
4. Press
ƒ
[
SOLVE
] to solve for
æ
, the
annual interest rate.
Getting Started: Computing Compound Interest