160
T
T
H
H
E
E
F
F
I
I
N
N
A
A
N
N
C
C
E
E
A
A
P
P
L
L
E
E
T
T
This aplet is designed to allow users to solve time-value-of-money (TVM) and
amortization style problems quickly and easily, as well as ordinary compound
interest problems.
Compound interest problems involve bank accounts, mortgages and similar
situations where “money earns money”. TVM problems involve the use of the
idea that the value of money changes with time - a dollar today is worth more
than the same dollar some years from now. For example, that a dollar
invested today can generate more money than the same dollar invested later.
The calculator manual contains a lengthier
explanation for those who need it, as does any
high school or college textbook.
When you the aplet you will see the
initial view shown right.
Pressing SYMB, NUM or PLOT will make no difference to this aplet as it is quite
limited and only has the one view, consisting of two related pages.
Parameters
There are a number of parameters or variables which must be either supplied
or solved for. These are:
N - The total number of compounding payments or
payments.
Mode - This has the value of Beg(inning) or End depending on
when payments occur relative to the compounding
periods - at the beginning or the end.
P/YR - The number of payments per year.
I%YR - The nominal interest rate or investment rate per year.
This is then divided by P/YR to find the nominal interest
per compounding period. This is the rate actually used
in the internal calculations.
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