Texas instruments TI-86 Financial Functions

TI-86 Financial Functions

Loading and Installing Finance Features on Your TI-86...............................2

Loading the Finance Features into TI-86 Memory..............................................................................2

Installing the Finance Features for Use...............................................................................................2

Displaying the FIN (Finance) Menu..................................................................................................... 3

The FIN Menu.....................................................................................................................................3

Uninstalling the Finance Features.......................................................................................................3

Deleting the Finance Program from TI-86 Memory ............................................................................ 3

The TVM (Time-Value-of-Money) Variables................................................... 4

FIN VARS (Finance Variables) Menu...................................................................................................4

Setting the Payment Format...........................................................................4

Payment Format Editor....................................................................................................................... 4

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

Using the TVM (Time-Value-of-Money) Solver.............................................. 5

FIN TVM Solver Menu.........................................................................................................................5

Solving for an Unknown TVM Variable (Payment Amount)................................................................5

Financing a Car...................................................................................................................................6

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

Using the Financial Functions.......................................................................... 7

Entering Cash Inflows and Cash Outflows..........................................................................................7

FIN FUNC (Financial Functions) Menu................................................................................................ 7

Calculating Time-Value-of-Money......................................................................................................7

Calculating Cash Flows.......................................................................................................................8

Calculating Amortization.................................................................................................................... 9

Amortization Example: Calculating an Outstanding Loan Balance................................................... 10

Calculating Interest Conversion........................................................................................................ 11

Finding Days Between Dates............................................................................................................ 11

Defining the Payment Method..........................................................................................................11

Menu Map for Financial Functions ............................................................... 12

MATH Menu (where FIN is automatically placed).............................................................................12

(MATH) FIN (Financial) Menu...........................................................................................................12

FIN TVM (Time-Value-of-Money) Solver Menu................................................................................. 12

FIN FUNC (Financial Functions) Menu.............................................................................................. 12

FIN VARS (Financial Variables) Menu...............................................................................................12

FIN FORMT (Financial Format) Menu................................................................................................12

Assembly Language Programming: Financial Functions

Loading and Installing Finance Features on Your TI-86

To load the financial features onto your TI-86, you need a computer and the TI-86 Graph Link software and cable. You also need to download the finance program file from the Internet and save it on your computer.

Loading the Finance Features into TI-86 Memory

When sending a program from your computer to the TI-86, the calculator must no be in Receive mode. The Receive mode is used when sending programs or data from one calculator to another.

The executable file associated with the assembly language program ( appears on the

menu, but you need

NAMES

not do anything with it.

finexe

PRGM

)

Start the TI-86 Graph Link on your computer.

Turn on your TI-86 and display the home screen.

Click on the Send button on the TI-86 Graph Link toolbar to display the Send dialog box.

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

Send the program to the TI-86. The program and its associated executable file become items on

PRGM NAMES

the

Exit Graph Link

(WLink86.exe)

- l

finance1.86g

menu.

For assembly language programs that must be installed, up to three can be installed at a time (although the TI-86 can store as many as permitted by memory). To install a fourth, you must first uninstall (page 3) one of the others.

The variables that will be overwritten are listed on the

FIN FUNC

menus (page 12).

and

FIN VARS

Installing the Finance Features for Use

Use the assembly language program

Finance

to install the finance features directly into the TI-86’s built-in functions and menus. After installation, the finance features are available each time you turn on the calculator. You do not need to reinstall them each time. When you run assembly language programs that do not install themselves into the - Œ / menu, their features are lost when you turn off the calculator.

All examples assume that on your TI-86. The position of

Finance

FIN

is the only assembly language program installed

on the

MATH

menu may vary, depending on how

many other assembly language programs are installed.

from the

CATALOG

PRGM

Finance

- w & #

(move 4 to

Asm(

)

8 &

Financ

(select

)

Select

Asm(

from the

to paste it to a blank line on the home screen.

Select

NAMES

Financ

menu to paste

to the home screen as an argument.

Run the installation program.

Caution:

If you have values stored 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.

Assembly Language Programming: Financial Functions

s n

If other assembly language programs are installed, may be in a menu cell other

- Œ /

than

FIN

Continue the installation. (Your

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

Display the home screen.

Displaying the FIN (Finance) Menu - Œ /

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

NUM PROB ANGLE HYP MISC 4 INTER FIN

MATH

menu.

Finance Menu

The FIN Menu - Œ / '

TVM FUNC VARS FORMT Uninst

TVM Finance Uninstall Solver Variables Menu Instruction

Functions Menu Format Editor

Financial Payment

FIN

becomes

When you uninstall the finance features, the finance assembly language program

Finance

( in memory, but the is removed from the menu.

Deleting the program does not delete the variables associated with the program.

and

finexec

) remain

FIN

optio

MATH

Uninstalling the Finance Features

Uninst

FIN

menu, and then

Yes

from the

- Œ / ' *

)

FIN

Display the select

If you are sure you want to uninstall, select confirmation menu. The menu is removed and the home screen is displayed. (Your version number may differ from the one shown in the example.)

Deleting the Finance Program from TI-86 Memory

Select

DELET

from the

menu.

PRGM

Select

DELET

from the

menu.

Move the selection cursor to

Finance

, and then delete it.

Move the selection cursor to

finexec

, and then delete it.

MEM

- ™ '

/ *

(as needed)

Assembly Language Programming: Financial Functions

The TVM (Time-Value-of-Money) Variables

FIN VARS (Finance Variables) Menu - Œ / ' (

TVM FUNC VARS FORMT Uninst

I PV PMT FV

PY CY

Prompts that correspond to some TVM variables are shown in parentheses.

Number of payment periods

Interest rate (

Present value of loan or lease

Payment amount

PMT

I%=

)

Future value of loan or lease

Payments per year (

Compounding periods per year(

P/Y=

)

C/Y=

♦ When you enter a value at prompts in the payment format editor (page 4) or

the TVM Solver (page 5), the corresponding variable values are updated.

♦ When you solve for a TVM variable using the TVM Solver, the corresponding

variable value is updated.

♦ When you enter numbers as arguments for a TVM function, the corresponding

variable values are not updated.

♦ When you solve for a TVM variable using a TVM function, the corresponding

variable value is not updated.

Setting the Payment Format

Payment Format Editor - Œ / ' )

TVM FUNC VARS FORMT Uninst

)

You also can change a setting by storing a value to

or CY or by executing

PY pEnd

pBegin

(page 11).

The payment format settings define the number of payments per year ( compounding periods per year (

), the number of

P/Y

C/Y

), and whether the payments are received at the end or beginning of each period (

PMT:END BEGIN

The payment format editor to the right shows the defaults. To change payments per year or compounding periods per year, enter a new value. To change the payment due setting, move the cursor onto

END

BEGIN

and then press b.

Entering Cash Inflows and Cash Outflows

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

Assembly Language Programming: Financial Functions

Using the TVM (Time-Value-of-Money) Solver

FIN TVM Solver Menu - Œ / ' &

TVM FUNC VARS FORMT SOLVE

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

To solve for an unknown variable, enter the four known variable values, move the cursor to the

When the TVM Solver is displayed,

on the

Uninst

SOLVE

FIN

replaces

menu.

unknown variable prompt, and then select (*) from the

FIN

displayed on the TVM Solver are stored to corresponding TVM variables.

Solving for an 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?

SOLVE

TVM Solver menu. Values

Enter cash inflows as positiv numbers and cash outflows as negative numbers.

You cannot leave a variable blank. If you do not have a value, set it to zero.

Set the fixed-decimal mode to 2 decimal places to display all numbers as dollars and cents.

Select to display the

Select

from the

FIN

FORMT

MATH

FIN

menu.

from the menu to display the payment format editor. Set 12 payments per year, 12 compounding periods per year, and payments received at the end of each payment period.

Display the TVM Solver and enter the known values for four TVM variables. The

value of

360 was derived from 30 (years)

12 (months).

Move the cursor to the TVM variable.

Select

SOLVE

to compute the answer. A small square is displayed next to the solution variable. The answer is stored to the corresponding TVM variable.

FIN

PMT

- m # " " " b

- Œ / '

)

# 12

# 18

# #

360

100000

Assembly Language Programming: Financial Functions

Financing a Car

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

PMT

P/Y, C/Y

to 0 and

When you change changes automatically.

As you enter a value at any TVM Solver prompt, the corresponding TVM variable value is updated.

Because there are no payments when you solve compound interest problems, you must set

P/Y

to 1.

set

The decimal mode is fixed at

from the previous example.

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

- m # " " " b

numbers as dollars and cents.

Display the payment format editor. Set payments per year

- Œ / '

)

# #

and compounding periods per year to 12. Set payment due at the end of each period.

Display the TVM Solver. Enter 48 monthly payments, present value of $9,000, payment amount

& # a b

# #

250

9000

of L$250 (negation indicates cash outflow), and future value of $0. The derived from 4 (years)

value (48) was

12 (months).

Move the cursor to rate) and then select

(interest

SOLVE

$ $ $ *

from the TVM Solver menu. A small square is displayed next to the solution. The solution value is stored to the TVM variable

Computing Compound Interest

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

Display the payment format editor. Set payments per year to 1 and compounding periods per year to 12. Set payment due at the end of each period.

Display the TVM Solver. Enter 7 annual payments, present value of L$1,250 (negation indicates cash outflow), payment amount of $0, and future value of $2,000.

- Œ / '

)

# 12

& #

# # a

2000

1250

Move the cursor to rate) and then select

SOLVE

from the TVM Solver menu. A small square is displayed next to the solution. The solution value is stored to the TVM variable

(interest

$ $ $ *

Assembly Language Programming: Financial Functions

Using the Financial Functions

Entering Cash Inflows and Cash Outflows

FIN FUNC (Financial Functions) Menu - Œ / '

TVM FUNC VARS FORMT Uninst

tvmN tvmI tvmPV tvmP tvmFV

Calculating Time-Value-of-Money

The first five items on the 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.

All arguments and punctuation inside the brackets are optional.

To store a value to a TVM variable, use the TVM Solver

or use variable on the menu.

and any TVM

[ ]

FIN VARS

tvmN [(æ,PV, tvmI [(N,PV, tvmPV [(N,æ, tvmP [(N,æ,PV,FV, tvmFV [(N,æ,PV,

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 these functions are not stored to the TVM variables.

PMT,FV,P/Y,C/Y

P/Y,C/Y

PMT,P/Y,C/Y

npv irr bal

nom eff dbd pBegin pEnd

FIN FUNC

] Computes the number of payment periods

)

] Computes the annual interest rate

)

] Computes the present value

)

] Computes the amount of each payment

)

] Computes the future value

)

menu are the time-value-of-money (TVM)

prn

int

If you enter less than six arguments, you must enter arguments in the order of the syntax, 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 or arguments in parentheses. The following examples show some ways to use the TVM functions.

Assembly Language Programming: Financial Functions

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

When you execute a TVM function on the home screen with no specified arguments, the TVM function ( the example) uses stored TVM variable values.

You can enter arguments directly on the home screen. Remember, neither the answer nor the arguments are stored to the TVM variables.

If you prefer, you can store values to the TVM variables on the home screen.

tvmPMT

To change an argument without changing the value stored to a TVM variable, enter arguments up to the argument you want to change. In the example, the interest rate is changed to

To store an answer to the appropriate TVM variable, use

and the

When you execute a TVM function ( example), it uses the newly stored TVM variable values.

FIN VARS

tvmPV

menu.

in the

Calculating Cash Flows

The next

FIN FUNC

menu items are cash flow functions. Use them to analyze the value of money over equal time periods. You can enter unequal cash flows. You can enter cash inflows or outflows.

9.5

npv(

interestRate,cashFlow0

cashFlowList[,cashFlowFrequency]

irr(

cashFlow0,cashFlowList

cashFlowFrequency]

[

Returns the sum of the present values for the

)

cash inflows and outflows

Returns the interest rate at which the net

)

present value of the cash flows is equal to 0

♦ interestRate is the rate by which to discount the cash flows (the cost of

money) over one period.

♦ cashFlow0 is the initial cash flow at time 0; it must be a real number. ♦ cashFlowList is a list of cash flow amounts after the initial cash flow cashFlow0. ♦ cashFlowFrequency is a list in which each element specifies the frequency of

occurrence 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 <10,000.

Assembly Language Programming: Financial Functions

The uneven cash flow below is expressed in lists. cashFlowFrequency indicates that the first element in cashFlowList (

3000

(

) occurs once (1), and the third element (

2000 2000 2000 4000 4000

2000

) occurs twice (2), the second element

4000

) occurs twice (2).

cashFlow0 =

cashFlowList =

cashFlowFrequency =

I% =

cashFlow0 =

cashFlowList =

2000

{2000,L3000,4000}

{2,1,2}

2000

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

cashFlowFrequency =

2000

N/A

1000 5000 3000

2500

3000

roundValue

internal precision used to calculate the balance.

effectiveRate, nominalRate

and must be real numbers;

compoundingPeriods

be > 0.

bal(

stored values for

PMT

to these variables before computing the principal.

specifies the

compoundingPeriods

must

Prn(

. You must store values

, and

Int(

, PV, and

use

Calculating Amortization

Items eight, nine, and ten are the amortization functions. Use them to calculate balance, sum of principal, and sum of interest for an amortization schedule.

bal(

nPayment[,roundValue]

Prn(

paymentA,paymentB

roundValue]

[

Int(

paymentA,paymentB

roundValue]

[

)

Computes the balance for an amortization schedule; nPayment (the number of the payment at which to calculate a balance) must be a positive integer <10,000

Computes the sum of the principal during a specified period for an amortization schedule; paymentA (the starting payment) and paymentB (the ending payment in the range) must be positive integers <10,000

Computes the sum of the interest during a specified period for an amortization schedule; paymentA (the starting payment) and paymentB (the ending payment in the range) must be positive integers <10,000

Assembly Language Programming: Financial Functions

Amortization Example: Calculating an Outstanding Loan Balance

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

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

Display the mode screen and set the fixed-decimal setting to in dollars and cents. Also, set

Param

graphing mode.

Display the payment format editor, and then set payments and compounding periods per year to 12, to be received at the end of each period.

Display the TVM Solver, and then enter the known TVM variable values:

N=360 PMT=L800 I=8 FV=0

Move the cursor to the prompt and solve for the present value of the loan. A small square specifies the solution.

Display the parametric equation editor. Turn off all stat plots.

PV=

- m #

, as

" " " b # # # " " b

- Œ / '

)

& a

800

360

# #

# 8 #

# 0

$ $ *

6 &

is on, press $,

(if a plot

to highlight it, and

; then #)

xt1

Define

as t and

Display the window variable

yt1

editor, and then enter these window variable values as shown.

Draw the graph and activate the trace cursor. Explore the graph of the outstanding balance over time.

Enter a value for

to view the

balance at a specific time.

bal(t)

& # - Œ

/ ' ' / ( - & E

6 '

# 0 #

# 0

125000

* ) ! "

10000

360

Assembly Language Programming: Financial Functions

Display the table setup editor, and then enter these values:

TblStart=0@Tbl=12 Indpnt: Auto

Display the table of outstanding balances, where time and at that point in time.

yt1

represents balance

Calculating Interest Conversion

Use the interest conversion functions annual effective rate to a nominal rate ( effective rate (

effectiveRate,compoundingPeriods

nom(

nominalRate,compoundingPeriods

eff(

eff

xt1

represents

7 '

# 12 #

nom

and

nom

)

eff

to convert interest rates from an

), or from a nominal rate to an annual

Computes the nominal interest rate

Computes the effective interest rate

Dates must fall between the years 1950 and 2049.

On the payment format

PMT:END BEGIN

editor’s

END

select annuity or select set annuity due.

to set ordinary

BEGIN

line,

Finding Days Between Dates

dbd

Use the date function

to calculate the number of days between two dates using the actual-day-count method. dateA and dateB can be numbers or lists of numbers within the range of the dates on the standard calendar.

dateA,dateB

dbd(

)

Calculates the number of days between dates; enter dateA and dateB in either of two formats: MM.DDYY (for U.S.) or DDMM.YY

(for Europe)

Defining the Payment Method

pEnd

and

pBegin

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

pBegin

pEnd

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

Specifies an ordinary annuity, where payments occur at the end of each payment period (Most loans are in this category;

Pmt_End

is the default.)

Assembly Language Programming: Financial Functions

Menu Map for Financial Functions

MATH Menu (where FIN is automatically placed) - Œ

NUM PROB ANGLE HYP MISC

INTER FIN

(MATH) FIN (Financial) Menu - Œ / '

TVM FUNC VARS FORMT Uninst

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

TVM FUNC VARS FORMT SOLVE

FIN FUNC (Financial Functions) Menu - Œ / ' '

TVM FUNC VARS FORMT Uninst

tvmN tvmI tvmPV tvmP tvmFV

npv irr bal

nom eff dbd pBegin pEnd

prn

int

FIN VARS (Financial Variables) Menu - Œ / ' (

TVM FUNC VARS FORMT Uninst

I PV PMT FV

PY CY

FIN FORMT (Financial Format) Menu - Œ / ' )

TVM FUNC VARS FORMT

Texas instruments TI-86 Financial Functions

Specifications and Main Features

Frequently Asked Questions

User Manual