pTI Calculator Financial Appp phello my name is Larry ho Im an assistant math professor at Frederick Community College one of the 103 adjuncts has acid I created podcasts demonstrating how to use the financial software on your TI calculator I think this is a powerful tool that we can give our students as most we encounter in a 103 class well probably be out behind their first new home or their first new car within the next four or five years and maybe having a child within the next four or five years and needing to sit up some college fund and this allows them to to figure out the numbers on that very quickly so I hope you enjoy it and I hope its something that your students will will use as well the first thing we need to do is figure out how to get to the place where we use this financial software if we look on our calculators right here that apps button in purple if we click on it so Finance is number one hit number one and the TVM solver is what were looking for right now so that is going to be number one okay and let me run through a couple scenarios and see if I can make these little columns here make Center that these roles make sense so the first thing I want to invest a 100 a month at 8 compounded monthly in this situation wed have someone who just had a kid and they want to invest in a college fund for 18 years so so that n is the number of compounding periods so we know its 18 years with 12 compounding periods per year and we can just punch it in just like that 18 times 12 that gives us 216 compounding periods our interest rate there it says I percent that is it actually wants to presume the percent form not the decimal form so eight percent put it in there present value PV is present value there is no present value here leave it set at zero payment thats what Im gonna be giving each month so money coming out of my pocket is negative and then you have to use this its negative sign there negative 100 bucks a months okay and we are compounding monthly so we have 12 payments per year and 12 compounding periods per year for all my application sections on the test I always make a compound monthly because thats all Ive ever experienced whether I bought home bought a car bought a fourwheeler any time Ive borrowed money its always been 12 payments per year or 12 compounding periods per year so and what we want to find is the future value of this investment so we go to future value right there FV and if we look down here we see solving green so I need to hit my green alpha and they come down here and hit enter okay so if I invest 100 bucks a month for 18 years 8 compounded monthly Im gonna have a little over 48, 000 from us from our childs college fund lets set them to zero and do a couple more okay this is gonna be a mortgage problem I need to borrow 220 thousand bucks thats gonna be a present value their PV thats money thats coming to me right now thats the present money although I got to give it to somebody else as soon as I get it but thats considered a present value Im getting two hundred twenty thousand bucks the bank has given that to me okay and Im gonna borrow it for 30 years so thirty times twelve doesnt want to do 12 payments per year what did that says my interest rate four point seven five four point seven five and lets go down to theres no future value here I need to figure out what my payment is okay so anything that youre not using set to zero thats the value set zero is fine so if I want to figure out my payment I go yeah alpha enter all right so that is if we want to borrow that money that two hundred twenty thousand bucks so for 30 years at month four point seven five minutes straight we are gonna be looking at pan 1147 bucks and I say eleven hundred forty eight bucks a month and then we need to also make sure we talk about the escrow as well its gonna add you know three four five hundred bucks on top of that another thing I would like to show you here that is interesting if we go down to one these empty spots go to future value and I click on apps again and I click on the finance the financial app and now dont go to ttpm so lets go to right theres some interest and this is interesting so if I want to find the answers the over some some 12 periods for a year so I want to find out how much I can deduct on my taxes lets say from the say from period what trade 200 comma wont be 211 to 1 1 now if I hit enter that tells me that for that year that involved periods two hundred to two hundred level I paid six thousand three hundred twenty bucks and some change on interest that could also be used for as well and what follows also show we have similarly we have a sum principal so I want to find the sum of the principal lets say from period from pin 1 period 12 thats how much principal we paid on the first year its gotta be on top of that thing so lets go back apps fine its number one principle there we go enter okay and I was figure out my for the principle that I paid my first year 112 parentheses hit enter okay therefore in the first year of paying monthly that 1147 bucks I actually only paid down my loan close to 3, 400 okay so lets say I got one more application that I would like to go over with you I think its very useful okay were a 19 year old kid we want to borrow my car and we need to borrow ten thousand bucks and weve done our homework and we know that we can only afford to spend you know about 200 bucks a month so thats gonna be a negative earnest money coming out of our pocket and I know because Ive been in math 103 I know that I I dont want to borrow for a car for more than six years short or for more than five years surely so this is going to be 12 times so five years 12 payments per year gives me 60 periods so I want to figure out we want to go in there asking the car salesman what interest rate can you give me where they are they are usually asking how much can you pay a month and they will go work out some loan for how many ever years they have to to make it work out where your payment works but we dont want that we know what our payment is and we know that we want 60 months we know we need ten thousand bucks so we need an we need a specific interest rate so I can go right here Ive set it all up hit alpha enter thus I know walking in there that that theyre gonna have to offer me an interest rate of 7.4 or below or I just cant afford the car again I think this is power were giving our students power when we arm them with this kind of knowledge before they walk into those situations that can be very intimidating so I hope you can enjoy it and I hope your students will use it as well thank you theres any questions email me el Hoff at Frederick edup

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