(adsbygoogle = window.adsbygoogle || []).push({}); [SOLVED] TVM Problem solving the end amount.

1. The problem statement, all variables and given/known data

2. A spreadsheet software or TVM solver on a calculator can be used to determine the equal monthly payments that can be paid from an annuity for a set length of time. You can enter different payments until you find the one that gives a closing balance of less than $1 after the set length of time. What monthly payment can be paid from an annuity of $100 000 earning 6.5% per annum, compounded monthly, with a life of 10 years?

2. Relevant equations

TVM Solver:

N = (Number of payment periods)

I% = (Annual Interest rate)

PV = (Present value)

PMT = (Payment, must be -number)

FV = (Future value)

P/Y = (Payment periods per year)

C/Y = (Compounding periods per year)

3. The attempt at a solution

I did this question in Excel and got under $1, however I'm trying to send this answer with work from Excel done and TVM so I understand both ways to do this question. I'll show my excel file in an attachment.

In the TVM solver I'm using on my TI-83 Plus I cannot seem to get the same results.

N = 120.00

I% = 6.50

PV = 100000.00

PMT = -1344.89

FV = (To be solved)

P/Y = 12.00

C/Y = 12.00

When solved, FV = 35265.34 (Which is wrong.)

In my excel file, the answer should be $0.24 after the 10 years (120 months).

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# Homework Help: TVM Problem solving the end amount.

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