Hi, I urgently need help on this calculator problem. The answer of a question is given as such below PMT = 4800 N = 3 I = 10% FV = 0 Compute PV = 11,937 ------------------------------------- But when I use my calculator, i end up getting -14163.30 ! Would you know how I could have used my calculator wrongly? My steps are 1 - CE/C CPT = to clear work 2- 4800 PMT 3- 3 N 4- 10 I 5- 0 FV 6 - CPT PV
I’ve tried it again in begin mode, end mode, and with your solution 14163.3 to see what the other parameters to get that answer could be, but I can’t see where you’re going wrong. Maybe someone else can figure it out, but … You’re always safer just doing it the old fashion way: {(1 - [1 / (1.1^3)]) / 0.10} * 4,800 = 11,936.89
do a 2nd clr tvm and then try.
Thanks cjones. May I ask what steps did u take on the calculator?
cpk: Thanks. Still comes up the same answer. This is panicking me. Please help me out someone!
I just did it… and it was fine. do the 2nd clr tvm then try.
First thought … if you have a TI, do [2ND] [CLR TVM] first instead of [CE/C] [CPT]. Then do your calc. With what you entered, you should get negative -11937 instead of positive +11937. A negative PV means you are owed some amount. A positive PV means you have borrowed and are paying it down. Not to get on a tangent, but think of the borrower’s perspective in a mortgage. You assume a $11,937 loan (PV = +11937) and you make three (N = 3) payments with a 10% periodic rate (I = 10) such that the loan value is fully amortized at the end (FV = 0). Computing PMT (CPT PMT) should yield a negative amount, because that is a cash outflow. In this case, it would be -4,800. In your original post, you had a 0 FV, but a positive PMT (flipped sign … cash inflow), so the PV should be negative. The interpretation is that you lent the PV and the cash inflows are repaying you. So at least the sign is right on the answer you got! It should have been negative. Not sure why the amount is wrong though. I did what cjones did and got 13,131 by switching to beginning interest. Try CLR TVM and see if that fixes your problem.
Maybe you are using .10 for I and not 10 for I. I change it to .10 for I on my HP and get over $14,000
{(1 - [1 / (1.1^3)]) / 0.10} * 4,800 = 11,936.89 I use the HP, so it may be a little different for you… Start with 1 ENTER, 0.10, PLUS >> 1.10 3, y^x >> 1.331 1/x >> 0.751315 CHS >> -0.751315 1, PLUS >> 0.248685 0.10, DIVIDE >> 2.486852 4,800, TIMES >> 11,963.889
planner Wrote: ------------------------------------------------------- > Maybe you are using .10 for I and not 10 for I. > > I change it to .10 for I on my HP and get over > $14,000 Yeah but then PV would be = 14371. I am very intrigued.
It wouldn’t have anything to do with p/y not being set correctly would it??.. If you hit second function i/y what figure is listed?..
maybe you have got the term I/Y wrong did you ever changed it. because the factory set it on 12. i calculated it and just get -11 936,89
do a 2nd reset set your calc decimal digits to 5 or whatever is your fancy. then retry
Damn… have resetted my calcualtor + changed decimal to 5 places. Still same result! Can someone pls continue to help me out with this… it’s panicky. What are the steps you guys took on your calculator?
get a new calculator…
Thanks for your responses. Is there anything that needs to be adjusted from factory mode for this? End/Bgn Mode?
hplee, you have payments per year at 12. You have to set that to one: [2nd][P/Y][1][ENTER] also use END mode [2nd][BGN] then press [2nd][SET] until it says END in the display and enter interest as follows [1][0][I/Y] That should do it. I get the same number as you have, if I do 12 P/Y. But really, all exercises and solutions are made for 1 P/Y. Take care, Carsten
Carsten: Thanks for nailing it down for me. Appreciate it! Thank you to the rest for your replies too. Good luck to us all!