Understanding the TI-84 TVM Solver for Annuities

This video tutorial demonstrates how to use the TI-84 TVM Solver to calculate the present value of a payout annuity. The example involves withdrawing $35,000 annually for 15 years from an account earning 5% interest. The tutorial covers setting up the TVM Solver, entering necessary values, and solving for the present value. It also calculates the total money withdrawn and the interest earned over the period.

What is the main objective of using the TI-84 TVM Solver in this example?

• To compute the monthly payment of a loan

• To determine the present value of a payout annuity

• To calculate the future value of an investment

• To find the interest rate of a savings account

Which button sequence is used to access the TVM Solver on the TI-84 calculator?

• Math, Enter, Enter

• 2nd, Mode, Enter

• Apps, Enter, Enter

• Mode, Enter, Enter

What is the interest rate used in this example?

• 3%

• 6%

• 4%

• 5%

What is the payment amount entered into the TVM Solver?

• $30,000

• $35,000

• $40,000

• $45,000

What is the future value entered into the TVM Solver for this example?

• $363,900

• $525,000

• $35,000

• $0

Why is the present value calculated as a negative number?

• Because it represents a future expense

• Because it is a loan amount

• Because it is a withdrawal amount

• Because it is an amount to be paid today

How much total money will be withdrawn from the account over 15 years?

• $450,000

• $500,000

• $525,000

• $550,000

What is the initial deposit required to achieve the desired withdrawals?

• $350,000

• $360,000

• $363,900

• $370,000

How is the total interest earned calculated?

• By multiplying the interest rate by the number of years

• By dividing the total withdrawals by the number of years

• By adding the total withdrawals to the initial deposit

• By subtracting the initial deposit from the total withdrawals

What is the total interest earned over the 15 years?

• $161,700

• $150,000

• $155,000

• $160,000