Activities 750
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%.
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 (
tvm) function where
temp1 = number of payments, temp2 = annual interest rate, temp3 = present value,
temp4 = monthly payment, temp5 = future value, and temp6 = begin- or end-of-payment
Enter the equation to solve for
s.
solve(s=p†(1+i)^n,s) | i=.14 and p=1000 and
n=6
Result: The future value at 14% interest is
2,194.97.
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