Find Principal, Interest, and Balance with TVM Solver - dummies

Find Principal, Interest, and Balance with TVM Solver

By C. C. Edwards

You can use the TVM Solver on the TI-83 Plus graphing calculator to find the principal and interest paid on a loan and then to determine the balance on that loan. Use the

The Sigma principal symbol on a TI-83

and

The symbol for Interest on TI-83

commands to compute the principal and interest paid on a loan during a specified time period. To use these commands, follow these steps:

  1. Assign values to all variables in the TVM Solver.

  2. Press [2nd][MODE] to enter the Home screen.

  3. Press [APPS][1] to access the Finance application menu. (On the TI-83, press [2nd][x–1].)

  4. Repeatedly press

    The down arrow on the TI-83

    to select

    Sigma Principal

    or

    Sigma interest

    and press [ENTER].

  5. Enter the number of the first payment in the specified time period, press [.], enter the number of the last payment in the time period, press [ ) ], and then press [ENTER] to display the result.

    The TI-83 displays the principal and interest of a loan.

Use the bal command to compute the balance of a loan after a specified time period. To use this command, follow these steps:

  1. Follow Steps 1 through 3 in the previous section.

  2. Repeatedly press

    The down button in the TI-83 calculator

    to select the bal command and press [ENTER].

  3. Enter the number of payments in the specified time period.

    You can enter the number of payments in the bal command as an arithmetic expression.

  4. Press [ ) ][ENTER] to display the result.

    TI-83 displays the balance of a loan.