TVM Problem solving the end amount.

[cjp88]

[SOLVED] TVM Problem solving the end amount.

Homework Statement

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?

Homework 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)

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).

 

[cjp88]

The problem has been solved. I mis-understood the question when doing the TVM Solver.

I was supposed to put 0 for FV, not what I got from my Excel answer, then use the solve for PMT.