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TI-86 Financial Funct ions

Loading and I nsta lling Finance Feature s on Your TI-86 ............................... 2

Loading t he Finance Features into TI-

86 M em ory .............................................................................. 2Installing the Finance Features for Use............................................................................................... 2Displaying the FIN (Finance) M enu ..................................................................................................... 3

The FIN M enu ..................................................................................................................................... 3Uninstalling the Finance Features....................................................................................................... 3

Deleting the Finance Program from TI-86 M emory ............................................................................ 3

The TVM (Time -Val ue-o f-M one y) Var iab les................................................... 4FIN VARS (Finance Variables) M enu ................................................................................................... 4

Sett ing th e Paym ent Forma t ........................................................................... 4Payment Format Editor ....................................................................................................................... 4

Entering Cash Inflows and Cash Outflows.......................................................................................... 4

Using the TVM (Time- Value-of -M oney) Solver .............................................. 5FIN TVM Solv er M enu ......................................................................................................................... 5

Solvin g fo r an U nkn ow n TVM Variabl e (Payment A mo unt ) ................................................................ 5Financing a Car................................................................................................................................... 6

Computing Compound Interest........................................................................................................... 6

Using t he Financial Functi ons.......................................................................... 7Entering Cash Inflows and Cash Outflows.......................................................................................... 7

FIN FUNC (Financial Functions) M enu ................................................................................................ 7Calculating Time-Value-of-M oney ...................................................................................................... 7

Calculating Cash Flows....................................................................................................................... 8Calculating Amortization .................................................................................................................... 9

Am orti zation Example: Calculat ing a n Out standin g Loan Bal ance................................................... 10Calculating Interest Conversion ........................................................................................................ 11

Findi ng Days Betw een Date s ............................................................................................................ 11Defining the Payment M ethod.......................................................................................................... 11

M enu M ap f or Financial Functio ns ............................................................... 12M ATH M enu (where FIN is automatically placed)............................................................................. 12(M ATH) FIN (Fina ncia l) M enu ........................................................................................................... 12

FIN TVM (Tim e-Val ue-o f-M on ey) Solv er M enu ................................................................................. 12FIN FUNC (Financial Functions) M enu .............................................................................................. 12

FIN VARS (Financial Variables) M enu ............................................................................................... 12FIN FORM T (Financial Format) M enu................................................................................................ 12

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Assembly Language Progra mm ing: Financial Functions 2

Load ing a nd Installing Finance Feat ures on Your TI-86To load the financial features onto your TI-86, you need a computer and the TI-86Graph Link software and cable. You also need to download the finance programfile from the Internet and save it on your computer.

Loading the Finance Features into TI -86 Memory

Start the TI-86 Graph Link onyour computer.

(WLink86.exe)

Turn on your TI-86 and displaythe home screen.

^

-l

Click on the Send button on theTI-86 Graph Link toolbar to

display the Send dialog box.

Specify the finance program fileas the file you want to send.

finance1.86g

Send the program to the TI-86.The program and its associated

executable file become items on

the PRGM NAMESmenu.

Exit Graph Link

Installing the Finance Features for Use

Use the assembly language program Financeto install the finance features directlyinto the TI-86s built-in functions and menus. After installation, the financefeatures are available each time you turn on the calculator. You do not need toreinstall them each time. When you run assembly language programs that do not

install themselves into the-/menu, their features are lost when youturn off the calculator.

All examples assume that Financeis the only assembly language program installedon your TI-86. The position of FINon the MATHmenu may vary, depending on howmany other assembly language programs are installed.

Select Asm(from the CATALOGto paste it to a blank line on the

home screen.

Select Financ from the PRGMNAMESmenu to paste Finance

to the home screen as an

argument.

-w(move 4toAsm()b

8&(select

Financ)E

Run the installation program.

Caution:If you have valuesstored to variables used by the

finance features, they will be

overwritten. To save your

values, press*to exit and then

store them to different variables.

Then repeat this installation.

b

When sending a programfrom your computer to theTI-86, the calculator must notbe in Receive mode. TheReceive mode is used whensending programs or datafrom one calculator toanother.

The executable fileassociated with the assemblylanguage program (finexe)appears on the PRGMNAMESmenu, but you neednot do anything with it.

For assembly languageprograms that must beinstalled, up to three can beinstalled at a time (althoughthe TI-86 can store as manyas permitted by memory). Toinstall a fourth, you must firstuninstall (page 3) one of theothers.

The variables that will beoverwritten are listed on theFIN FUNCand FIN VARSmenus (page 12).

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Continue the installation. (Yourversion number may differ fromthe one shown in the example.)

&

Display the home screen. :

Displaying t he FIN (Finance) M enu -/

When you install the financial program on your TI-86 and activate it, FINbecomesthe last item on the MATHmenu.

NUM PROB ANGLE HYP MISC 4 INTER FIN

Finance Menu

The FIN M enu -/'

TVM FUNC VARS FORMT Uninst

TVM Finance Uninstall Solver Variables Menu Instruction

Financial Payment Functions Menu Format Editor

Uninstalling t he Finance Feat ures

Display the FINmenu, and thenselect Uninst.

-/'

*

If you are sure you want to

uninstall, select Yesfrom theconfirmation menu. The FIN

menu is removed and the homescreen is displayed. (Your

version number may differ fromthe one shown in the example.)

)

Delet ing the Finance Program f rom TI-86 Memory

Select DELETfrom the MEMmenu.

-'

Select PRGMfrom the MEM

DELETmenu.

/*

Move the selection cursor toFinance, and then delete it.

#(as needed)b

Move the selection cursor tofinexec, and then delete it.

#(as needed)b

If other assembly languageprograms are installed, FINmay be in a menu cell otherthan-/'.

When you uninstall thefinance features, the financeassembly language programs(Financeand finexec) remain

in memory, but the FINoptionis removed from the MATHmenu.

Deleting the program doesnot delete the variablesassociated with the program.

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The TVM (Time-Value-of -M oney) Variables

FIN VARS (Finance Variables) Menu -/'(


I PV PMT FV 4 PY CY

N Number of payment periods FV Future value of loan or lease

I Interest rate (I%=) PY Payments per year (P/Y=)

PV Present value of loan or lease CY Compounding periods per year(C/Y=)

PMT Payment amount

When you enter a value at prompts in the payment format editor (page 4) orthe TVM Solver (page 5), the corresponding variable values are updated.

When you solve for a TVM variable using the TVM Solver, the correspondingvariable value is updated.

When you enter numbers as arguments for a TVM function, the correspondingvariable values arenotupdated.

When you solve for a TVM variable using a TVM function, the correspondingvariable value isnotupdated.

Set ting the Payment Format

Payment Format Editor -/')


The payment format settings define the numberof payments per year (P/Y), the number ofcompounding periods per year (C/Y), andwhether the payments are received at the end orbeginning of each period (PMT:END BEGIN).

The payment format editor to the right showsthe defaults. To change payments per year or compounding periods per year, enter anew value. To change the payment due setting, move the cursor onto ENDor BEGIN,and then pressb.

Entering Cash Inflow s and Cash Outf lows

When using the financial functions, you must enter cash inflows (cash received) aspositive numbers and cash outflows (cash paid) as negative numbers. The financialfunctions follow this convention when computing and displaying answers.

Prompts that correspond tosome TVM variables areshown in parentheses.

You also can change asetting by storing a value toPYor CYor by executingpEndor pBegin(page 11).

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Using the TVM (Time-Value-of -M oney) Solver

FIN TVM Solver M enu -/'&

TVM FUNC VARS FORMT SOLVE

The TVM Solver displays prompts for the fivetime-value-of-money (TVM) variables.

To solve for an unknown variable, enter the fourknown variable values, move the cursor to theunknown variable prompt, and then select SOLVE(*) from the FINTVM Solver menu. Valuesdisplayed on the TVM Solver are stored to corresponding TVM variables.

Solving for a n Unknown TVM Variable (Payment Amount)

You want to buy a $100,000 house with a 30-year mortgage. If the annual

percentage rate (APR) is 18%, what are the monthly payments?

Set the fixed-decimal mode to 2decimal places to display all

numbers as dollars and cents.

-m#

"""b

Select FINfrom the MATHmenuto display the FINmenu.

-/'

Select FORMTfrom the FINmenu to display the paymentformat editor. Set 12 payments

per year, 12 compounding

periods per year, and paymentsreceived at the end of each

payment period.

)12#12#

b

Display the TVM Solver andenter the known values for four

TVM variables. The Nvalue of360 was derived from 30 (years)

M12 (months).

&360#18#

100000##0b

Move the cursor to the PMTTVM variable.

$

Select SOLVEto compute theanswer. A small square is

displayed next to the solution

variable. The answer is stored tothe corresponding TVM variable.

*

When the TVM Solver isdisplayed, SOLVEreplacesUninston the FINmenu.

Enter cash inflows as positivenumbers and cash outflowsas negative numbers.

You cannot leave a variableblank. If you do not have avalue, set it to zero.

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Financing a Car

You have found a car you would like to buy. The car costs $9,000. You can affordpayments of $250 per month for four years. What annual percentage rate (APR)will make it possible for you to afford the car?

Set the fixed-decimal mode to 2decimal places to display all

numbers as dollars and cents.

-m#"""b

Display the payment formateditor. Set payments per year

and compounding periods peryear to 12. Set payment due at

the end of each period.

-/')12##b

Display the TVM Solver. Enter48 monthly payments, present

value of $9,000, payment amountof L$250 (negation indicates

cash outflow), and future value

of $0. The Nvalue (48) wasderived from 4 (years)M12 (months).

&48##9000

#a250#0

b

Move the cursor to=(interestrate) and then select SOLVE

from the TVM Solver menu. A

small square is displayed next tothe solution. The solution value

is stored to the TVM variable I.

$$$*

Computing Compound Inter est

At what annual interest rate, compounded monthly, will $1,250 accumulate to$2,000 in 7 years?

Display the payment formateditor. Set payments per year to1 and compounding periods per

year to 12. Set payment due atthe end of each period.

-/')1#12#

b

Display the TVM Solver. Enter 7annual payments, present valueof L$1,250 (negation indicates

cash outflow), payment amountof $0, and future value of $2,000.

&7##a1250

#0#2000b

Move the cursor to=(interestrate) and then select SOLVE

from the TVM Solver menu. Asmall square is displayed next to

the solution. The solution valueis stored to the TVM variable I.

$$$*

When you change P/Y, C/Ychanges automatically.

As you enter a value at anyTVM Solver prompt, thecorresponding TVM variablevalue is updated.

Because there are nopayments when you solvecompound interest problems,you must set PMTto 0andset P/Yto 1.

The decimal mode is fixed at2from the previous example.

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Using t he Financial Functions

Entering Cash Inflow s and Cash Outf lows

When using the financial functions, you must enter cash inflows (cash received) as

positive numbers and cash outflows (cash paid) as negative numbers. The financialfunctions follow this convention when computing and displaying answers.

FIN FUNC (Financial Functions) M enu -/'


tvmN tvmI tvmPV tvmP tvmFV 4 npv irr bal Gprn Gint

4 nom eff dbd pBegin pEnd

Calculating Time-Value-of-Money

The first five items on the FIN FUNCmenu are the time-value-of-money (TVM)functions. You can use them to analyze financial instruments, such as annuities,loans, mortgages, leases, and savings, on the home screen or in a program.

tvmN [(,PV,PMT,FV,P/Y,C/Y)] Computes the number of payment periods

tvmI[(N,PV,PMT,FV,P/Y,C/Y)] Computes the annual interest rate

tvmPV[(N,,PMT,FV,P/Y,C/Y)] Computes the present value

tvmP[(N,,PV,FV,P/Y,C/Y)] Computes the amount of each payment

tvmFV[(N,,PV,PMT,P/Y,C/Y)] Computes the future value

Each TVM function takes zero to six arguments. Each argument must be a real

number or a TVM variable. The values that you specify as arguments for thesefunctions are not stored to the TVM variables.

If you enter less than six arguments, you must enter arguments in the order of thesyntax, up to the last argument you want to enter. The program substitutes a

previously stored TVM variable value for each subsequent unspecified argument.If you enter any arguments with a TVM function, you must place the argument orarguments in parentheses. The following examples show some ways to use theTVM functions.

All arguments andpunctuation inside the []brackets are optional.

To store a value to a TVMvariable, use the TVM Solveror useXand any TVMvariable on the FINVARSmenu.

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Assume these values are stored to the TVM variables in the payment format editor and TVM Solver.

When you execute a TVMfunction on the home screenwith no specified arguments,the TVM function (tvmPMTinthe example) uses stored TVMvariable values.

To change an argument withoutchanging the value stored to aTVM variable, enter argumentsup to the argument you want tochange. In the example, theinterest rate is changed to 9.5.

You can enter argumentsdirectly on the home screen.Remember, neither the answernor the arguments are stored tothe TVM variables.

To store an answer to theappropriate TVM variable, useXand the FIN VARSmenu.

If you prefer, you can storevalues to the TVM variables onthe home screen. When you execute a TVM

function (tvmPVin theexample), it uses the newlystored TVM variable values.

Calculat ing Cash Flows

The next FIN FUNCmenu items are cash flow functions. Use them to analyze thevalue of money over equal time periods. You can enter unequal cash flows. Youcan enter cash inflows or outflows.

npv(interestRate,cashFlow0, cashFlowList[,cashFlowFrequency])

Returns the sum of the present values for thecash inflows and outflows

irr(cashFlow0,cashFlowList [,cashFlowFrequency])

Returns the interest rate at which the netpresent value of the cash flows is equal to 0

interestRateis the rate by which to discount the cash flows (the cost ofmoney) over one period.

cashFlow0is the initial cash flow at time 0; it must be a real number.

cashFlowListis a list of cash flow amounts after the initial cash flow cashFlow0.

cashFlowFrequencyis a list in which each element specifies the frequency ofoccurrence for a grouped (consecutive) cash flow amount, which is the

corresponding element of cashFlowList. The default is 1; if you enter values,they must be positive integers

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The uneven cash flow below is expressed in lists. cashFlowFrequencyindicatesthat the first element in cashFlowList(2000) occurs twice (2), the second element(L3000) occurs once (1), and the third element (4000) occurs twice (2).

cashFlow0= 2000

cashFlowList = {2000,L3000,4000}

cashFlowFrequency = {2,1,2}

I% = 6

cashFlow0= L2000

cashFlowList = {L2000,1000, L2500,0,5000,3000}

cashFlowFrequency = N/A

Calculating Am ortizationItems eight, nine, and ten are the amortization functions. Use them to calculatebalance, sum of principal, and sum of interest for an amortization schedule.

bal(nPayment[,roundValue]) Computes the balance for an amortization schedule;nPayment(the number of the payment at which tocalculate a balance) must be a positive integer

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Assembly Language Progra mm ing: Financial Functions 1 0

Amort ization Example: Calculating a n Outstanding Loan Balance

You want to buy a home with a 30-year mortgage at 8 percent annual percentagerate (APR). Monthly payments are $800. Calculate the outstanding loan balanceafter each payment and display the results in a graph and in the table.

Display the mode screen and setthe fixed-decimal setting to 2, as

in dollars and cents. Also, setParamgraphing mode.

-m#

"""b

###""b

Display the payment formateditor, and then set paymentsand compounding periods per

year to 12, to be received at theend of each period.

-/')12##b

Display the TVM Solver, andthen enter the known TVM

variable values:N=360 PMT=L800

I=8 FV=0

&360#8##a800#0b

Move the cursor to the PV=prompt and solve for the presentvalue of the loan. A small square

specifies the solution.

$$*

Display the parametric equationeditor. Turn off all stat plots.

Define xt1as tand yt1as bal(t).

6&(if a plot

is on, press$,"to highlight it, and

b; then#)

-

/''/(-&E

Display the window variableeditor, and then enter these

window variable values asshown.

6'0#360

#12#0#360

#50#0#125000#10000

Draw the graph and activate thetrace cursor. Explore the graphof the outstanding balance over

time.

*)

!"

Enter a value for tto view thebalance at a specific time.

24b

A stat plot is turned on if it ishighlighted with a box.

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Display the table setup editor,and then enter these values:TblStart=0 @Tbl=12

Indpnt: Auto

7'0#12#b

Display the table of outstandingbalances, where xt1represents

time and yt1represents balanceat that point in time.

&

Calculating Interest Conversion

Use the interest conversion functions nomand effto convert interest rates from anannual effective rate to a nominal rate (nom), or from a nominal rate to an annualeffective rate (eff).

nom(effectiveRate,compoundingPeriods) Computes the nominal interest rate

eff(nominalRate,compoundingPeriods) Computes the effective interest rate

Finding Days Betw een Dat es

Use the date function dbdto calculate the number of days between two datesusing the actual-day-count method. dateAand dateBcan be numbers or lists ofnumbers within the range of the dates on the standard calendar.

dbd(dateA,dateB) Calculates the number of days between dates; enter dateAanddateBin either of two formats:MM.DDYY(for U.S.) orDDMM.YY(for Europe)

Defining the Payment Me thod

pEndand pBeginspecify a transaction as an ordinary annuity or an annuity due.Executing either instruction sets the payment method for subsequent financialcalculations. The current setting is displayed in the payment format editor(page 4).

pBegin Specifies an annuity due, where payments occur at the beginning

of each payment period (Most leases are in this category.)pEnd Specifies an ordinary annuity, where payments occur at the end

of each payment period (Most loans are in this category;Pmt_Endis the default.)

Dates must fall between theyears 1950 and 2049.

On the payment format

editors PMT:END BEGINline,select ENDto set ordinaryannuity or select BEGINtoset annuity due.

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M enu M ap f or Financial Funct ions

M ATH M enu (wher e FIN is autom atically placed) -

NUM PROB ANGLE HYP MISC 4 INTER FIN

(MATH) FIN (Financial) Menu -/'


FIN TVM (Time-Value-of-Money) Solver Menu -/'&

TVM FUNC VARS FORMT SOLVE

FIN FUNC (Financial Functions) M enu -/''


tvmN tvmI tvmPV tvmP tvmFV 4 npv irr bal Gprn Gint

4 nom eff dbd pBegin pEnd

FIN VARS (Financial Var iable s) M enu -/'(


I PV PMT FV 4 PY CY

FIN FORMT (Financial Format) Menu -/')

TVM FUNC VARS FORMT

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