Calculating Future Value of an Annuity with TI84 TVM Solver

This video tutorial demonstrates how to calculate the future value of an annuity using the TI-84 calculator's TVM Solver. The example involves depositing $4000 annually into an account with 8% interest compounded annually over 30 years. The tutorial guides viewers through accessing the TVM Solver, entering necessary values, and solving for the future value, which is determined to be $453,132.84. The process includes setting the number of compounding periods, interest rate, present value, and payment details. The video concludes with a summary of the steps and the final calculated amount.

What is the purpose of using the TI-84 TVM Solver in this tutorial?

• To calculate the future value of an annuity

• To graph a function

• To perform statistical analysis

• To solve algebraic equations

How do you access the TVM Solver on the TI-84 calculator?

• Download an app from the internet

• Press Apps, then Enter twice

• Open the calculator settings

• Use the graphing function

What does 'N' represent in the context of the TVM Solver?

• Number of payments per year

• Nominal interest rate

• Net present value

• Total number of compounding periods

If the interest is compounded quarterly, what would 'N' be for a 30-year period?

• 360

• 4

• 30

• 120

What value is entered as the present value in the TVM Solver?

• Zero dollars

• The interest rate

• The amount of annual payment

• The future value to be calculated

How does the compounding frequency affect the value of 'N'?

• Higher frequency increases 'N'

• It resets 'N' to zero

• Higher frequency decreases 'N'

• It does not affect 'N'

Why is the payment entered as a negative value in the TVM Solver?

• To indicate a positive future value

• Because it represents profit

• Because it is a mistake in the input

• Because it represents an outflow of money

What does 'P/Y' stand for in the TVM Solver?

• Past yearly rate

• Percentage yield

• Payments per year

• Present year value

What assumption is made if the compounding frequency is not specified?

• It defaults to monthly

• It is considered continuous

• It defaults to annually

• It's the same as the number of payments per year

What is the future value of the annuity after 30 years?

• $350,000

• $453,132.84

• $400,000

• $500,000