Download Using Equation Solver for Interest Problems

Using Equation Solver for Interest Problems
To run EquationSolver:
1. !MATH!
1.
2. G O:Solver IENTER
I
3. G to change your equation
4. !VARSI
2. enter 1 on the piece you want
3. enter knownvalues
4. put cursor on the 1 of the piece you want
5. III Y-VARS
IENTER!
5.
!ENTER!to
see the pieces of the formula
IALPHA! [SOLVE]
6. 1:function IENTER
!
7. G to choose the correct equation
IENTER
!
To enter the equations only once, we will
store them in 1Y3. Enter the equations as
shown:
Yl
= I-PRT
Simple Interest
IY3Enter only the equations here. Do not enter
any values.
I = PRT
I =Interest
P=Principal
R=Rate per year
T=Timein years
Y2 = M-Pj(l-DT)
Face Value of Simple
Discount Note
P
M=1-DT
M=MaturityValue
P=Proceeds
D=DiscountRate
T=Time in years
Y3
= B-MDT
Bank Discount
Y4
= F-P(l+R/N)"(NT)
Compound
Interest
(Maturity=Principal + Interest)
(Proceeds=Maturity-Bank Discount)
RNT
FV=PV*(l+l\f)
F=Amount in account, FV= future value
P=Principal, PV= present value
R=Rate
T= Time in years
moj12, daj360, daj365
N= Number of compound periods in 1 year
Y5 = P-X*(l-(l+R/N)"(-NT»j(R/N)
Amortized Loans
Annuities
moj12,daj360,daj365
B = MDT
B=Bank Discount
M=Maturity, Face Value
D=Discount Rate
moj12, daj360, daj365
T=Time in years
M=P+I
P=M-B
~
~
moj12, daj360, daj365
1-
PV=Pmt*
R
( 1+- N)
-NT
R
N
P = PV = Present Value of Annuities
X
= Pmt = Payment
R = Rate
N = Numberof compound periods in 1 year
T= Time in years
mO/12,da/360, da/365
Kathie Daviau, Billings Adult Basic Education Center, @200S
Y6 = F-X*«l+R/NY'(NT)-l)/(R/N)
Annuities Sinking Funds
Payment at End
Retirement
Mutual Funds
R
FV = Pmt
Y8 = U-F(N/P)*«N+1)/(P+1»
Unearned Interest
NT
-1
R
N
F = FV = Future Value
X = Pmt = Payment
R = Rate
N = Number of compound periods in 1 year
T= Time in years
mo/12, da/360, da/365
Y7 = F-(X*« 1+ R/N)A(NT + 1)-1)/ ( R/N)-X)
Annuities Due
Payment at the Beginning
( 1+- N )
*
R
FV=Pmt*
NT+l
( 1+-N )
-1
-Pmt
R
N
F = FV = Future Value
X = Pmt = Payment
R = Rate
N = Number of compound periods in 1 year
T= Time in years
mO/12, da/360, da/365
U=F(N)(N+1)
P P+1
U = Unearned Interest (not earned by lender)
F = Finance Charge
N = Number of payments remaining
P = Total number of payments originally