1 / 13

PERSONAL FINANCE

PERSONAL FINANCE. MBF3C Lesson #5: TVM Solver & Effects of Changing the Conditions on Investments and Loans. USING THE “CALC” FUNCTION ON TI-83. USING THE “ZOOM” FUNCTION ON TI-83.

yepa
Download Presentation

PERSONAL FINANCE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PERSONAL FINANCE MBF3C Lesson #5: TVM Solver & Effects of Changing the Conditions on Investments and Loans

  2. USING THE “CALC” FUNCTION ON TI-83

  3. USING THE “ZOOM” FUNCTION ON TI-83 • The ZOOM menu is a very useful tool when working with graphs. It not only offers preset windows, but other ways of looking at a graph.

  4. Banks, paycheque advance companies, loan companies, and stores lend money to their customers at varying interest rates, compounding periods, and terms. It is important for consumers to understand how changing the conditions of a loan will affect the amount they will have to repay. This is also true for changing the conditions of an investment.

  5. 1. a) Assuming the same rate of return, how much will Ken’s investment be worth in four years?

  6. 1. b) Predict the value of Ken’s investment in four years if the rate of return is doubled.

  7. Use Technology to Compare Different Compounding Periods • Anna has $2000 available to invest at 12% per year, compounded annually. She will need the money in six to eight years to finance her children’s education. a) Use a graphing calculator, graph A = 2000(1.12)n b) Use the CALC feature to determine the value of A for i) n = 6 ii) n = 7 iii) n = 8

  8. Future InvestmentTyler wants to have $5000 in four years time. How much would Tyler need to invest today at 4% per year, compounded quarterly? at 4.5% per year, compounded quarterly?

  9. Key Concepts • When changing any conditions of an investment or loan, the amount or principal will also change. • Doubling an interest rate or term more than doubles the total interest. • This is due to the effects of compounding. • The more frequent the compounding period, the greater the effects of any changes to the investment or loan.

  10. IN-CLASS & HOMEWORK Page 450-453, #1, 5, 7, 10, 12, 17

More Related