Here’s an HTML-formatted explanation of the TI-84 Plus CE’s finance functions, focusing on key features and common uses. “`html

TI-84 Plus CE Finance Functions: A Quick Guide

The TI-84 Plus CE calculator is a powerful tool for solving various financial problems. Its built-in finance application provides convenient functions for calculating things like time value of money, amortization schedules, and cash flow analysis. Here’s an overview of some key functions:

Accessing the Finance Menu

To access the finance functions, press the APPS button. Then, select Finance… and press ENTER. You’ll see several options, the most common being TVM Solver….

Time Value of Money (TVM) Solver

The TVM Solver allows you to calculate the present value, future value, interest rate, number of periods, or payment amount for various investment scenarios. The variables are:

• N: Number of compounding periods.
• I%: Annual interest rate (entered as a percentage, e.g., 5 for 5%).
• PV: Present value of the investment.
• PMT: Payment amount per period. Make sure to enter a negative value if you are paying out money (e.g., for a loan).
• FV: Future value of the investment.
• P/Y: Number of payments per year.
• C/Y: Number of compounding periods per year. Typically, P/Y and C/Y are the same.
• PMT: END BEGIN: Specifies whether payments are made at the end or the beginning of the period. Select BEGIN for annuities due (payments at the beginning) and END (the default) for ordinary annuities (payments at the end).

To solve for a variable, enter the values for all the other variables, position the cursor on the variable you want to solve for, and press ALPHA then ENTER (which executes the SOLVE function).

Example: You want to save $10,000 in 5 years. You can earn 4% interest compounded monthly. How much do you need to deposit today?

N = 60 (5 years * 12 months/year)
I% = 4
PV = ? (This is what we’re solving for)
PMT = 0 (No regular payments)
FV = 10000
P/Y = 12
C/Y = 12

Solve for PV to find the required initial deposit.

Amortization Schedule

After using the TVM Solver to determine the payment amount for a loan, you can use the Amortization function to view the principal and interest breakdown for each payment. Go back to the APPS menu, select Finance… and choose Amortiz. Enter P1 (the starting payment number) and P2 (the ending payment number). The calculator displays the interest (INT), principal (PRN), and remaining balance (BAL) for the specified period.

Cash Flow Analysis (NPV & IRR)

The TI-84 Plus CE can also calculate Net Present Value (NPV) and Internal Rate of Return (IRR) for a series of cash flows. These functions are located in the Finance menu. You enter the initial investment (CF0), followed by the subsequent cash flows (CF1, CF2, etc.) and their corresponding frequencies (how many times each cash flow occurs consecutively). Then, input the discount rate (I) to calculate NPV or simply calculate IRR.

Important Considerations

• Always clear the TVM variables (using ALPHA CLEAR) before starting a new problem to avoid errors from previous calculations.
• Pay close attention to the sign convention. Money you receive is positive, and money you pay out is negative.
• Ensure that the interest rate (I%) and number of periods (N) are consistent (e.g., if interest is compounded monthly, N should be the number of months).

These finance functions provide a powerful set of tools for analyzing investments, loans, and other financial scenarios. Understanding how to use them can greatly simplify financial calculations and decision-making.

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