Miscellaneous Programs and Equations 17–1
File name 32sii-Manual-E-0424
Printed Date : 2003/4/24 Size : 17.7 x 25.2 cm
17
Miscellaneous Programs and
Equations
Time Value of Money
Given any four of the five values in the "Time–Value–of–Money equation"
(TVM), you can solve for the fifth value. This equation is useful in a wide
variety of financial applications such as consumer and home loans and
savings accounts.
The TVM equation is:
0))100(1(
100
1001(1
=+++
+−
−
−
BIF
I
I
P
N
N
Balance, B
Future Value, F
Payments, P
N
_
1
N
1
2
3
The signs of the cash values (balance, B; payment, P; and future balance, F)
correspond to the direction of the cash flow. Money that you receive has a
positive sign while money that you pay has a negative sign. Note that any
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