Which Of These Groups Of Values Plugged Into The TVM Solver Of A Graphing Calculator Will Return The Amount Of A 15-year Loan With An APR Of 15.6\%, Compounded Monthly, That Is Paid Off With Monthly Payments Of $\$230$?A. $N=180; \,
Introduction
When it comes to calculating the amount of a loan, the TVM Solver on a graphing calculator is a powerful tool that can help you determine the total amount of a loan based on various factors such as the interest rate, loan term, and monthly payments. In this article, we will explore which group of values plugged into the TVM Solver will return the amount of a 15-year loan with an APR of 15.6%, compounded monthly, that is paid off with monthly payments of $230.
Understanding the TVM Solver
The TVM Solver is a built-in function on many graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. To use the TVM Solver, you need to input the following values:
- N: The number of periods (in this case, the number of months)
- I/Y: The interest rate per period (in this case, the APR divided by 12)
- PMT: The monthly payment amount
- PV: The present value of the loan (in this case, the amount borrowed)
- FV: The future value of the loan (in this case, the amount paid off at the end of the loan term)
Calculating the Amount of the Loan
To calculate the amount of the loan, we need to plug in the following values into the TVM Solver:
- N: 15 years * 12 months/year = 180 months
- I/Y: 15.6% / 12 = 1.3% per month
- PMT: $230 per month
- PV: This is the value we are trying to find
- FV: $0 (since the loan is paid off at the end of the loan term)
Plugging in the Values
Let's plug in the values into the TVM Solver:
- N: 180
- I/Y: 1.3
- PMT: 230
- PV: ?
- FV: 0
Solving for PV
To solve for PV, we need to use the TVM Solver to calculate the present value of the loan. The TVM Solver will return the amount of the loan, which is the value of PV.
Alternative Groups of Values
In addition to the group of values listed above, there are several alternative groups of values that can be plugged into the TVM Solver to calculate the amount of the loan. These include:
- N: 15 years * 12 months/year = 180 months
- I/Y: 15.6% / 12 = 1.3% per month
- PMT: $230 per month
- PV: This is the value we are trying to find
- FV: $0 (since the loan is paid off at the end of the loan term)
- N: 180
- I/Y: 1.3
- PMT: 230
- PV: ?
- FV: 0
- N: 180
- I/Y: 1.3
- PMT: 230
- PV: ?
- FV: 0
Conclusion
In conclusion, the group of values that will return the amount of a 15-year loan with an APR of 15.6%, compounded monthly, that is paid off with monthly payments of $230 is:
- N: 180
- I/Y: 1.3
- PMT: 230
- PV: ?
- FV: 0
By plugging in these values into the TVM Solver, you can calculate the amount of the loan and determine the total amount of the loan based on the given factors.
Frequently Asked Questions
- Q: What is the TVM Solver? A: The TVM Solver is a built-in function on many graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan.
- Q: What values do I need to plug into the TVM Solver to calculate the amount of the loan?
A: You need to plug in the following values:
- N: The number of periods (in this case, the number of months)
- I/Y: The interest rate per period (in this case, the APR divided by 12)
- PMT: The monthly payment amount
- PV: The present value of the loan (in this case, the amount borrowed)
- FV: The future value of the loan (in this case, the amount paid off at the end of the loan term)
- Q: How do I solve for PV? A: To solve for PV, you need to use the TVM Solver to calculate the present value of the loan. The TVM Solver will return the amount of the loan, which is the value of PV.
References
Additional Resources
Introduction
The TVM Solver is a powerful tool on graphing calculators that helps you calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. However, many users have questions about how to use the TVM Solver, what values to plug in, and how to interpret the results. In this article, we will answer some of the most frequently asked questions about the TVM Solver.
Q: What is the TVM Solver?
A: The TVM Solver is a built-in function on many graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan.
Q: What values do I need to plug into the TVM Solver to calculate the amount of the loan?
A: You need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the loan (in this case, the amount borrowed) + FV: The future value of the loan (in this case, the amount paid off at the end of the loan term)
Q: How do I solve for PV?
A: To solve for PV, you need to use the TVM Solver to calculate the present value of the loan. The TVM Solver will return the amount of the loan, which is the value of PV.
Q: What is the difference between the present value and the future value?
A: The present value (PV) is the amount of the loan that you borrow, while the future value (FV) is the amount of the loan that you will pay off at the end of the loan term.
Q: How do I calculate the interest rate per period (I/Y)?
A: To calculate the interest rate per period (I/Y), you need to divide the annual percentage rate (APR) by 12.
Q: What is the amortization schedule?
A: The amortization schedule is a table that shows the monthly payment amount, the interest paid, and the principal paid for each month of the loan.
Q: How do I use the TVM Solver to calculate the amortization schedule?
A: To use the TVM Solver to calculate the amortization schedule, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the loan (in this case, the amount borrowed) + FV: The future value of the loan (in this case, the amount paid off at the end of the loan term)
Q: What is the difference between the TVM Solver and a financial calculator?
A: The TVM Solver is a built-in function on graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. A financial calculator is a separate device that is specifically designed to calculate financial metrics.
Q: Can I use the TVM Solver to calculate other types of loans?
A: Yes, you can use the TVM Solver to calculate other types of loans such as mortgages, car loans, and personal loans.
Q: How do I troubleshoot common errors when using the TVM Solver?
A: To troubleshoot common errors when using the TVM Solver, you need to check the following: + Make sure that you have entered the correct values for N, I/Y, PMT, PV, and FV. + Make sure that you have selected the correct function on your graphing calculator. + Make sure that you have followed the correct steps to use the TVM Solver.
Q: Where can I find more information about the TVM Solver?
A: You can find more information about the TVM Solver in the user manual for your graphing calculator, online tutorials, and financial websites.
Q: Can I use the TVM Solver to calculate the return on investment (ROI)?
A: Yes, you can use the TVM Solver to calculate the return on investment (ROI).
Q: How do I calculate the ROI using the TVM Solver?
A: To calculate the ROI using the TVM Solver, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the investment (in this case, the amount invested) + FV: The future value of the investment (in this case, the amount returned)
Q: What is the difference between the TVM Solver and a spreadsheet?
A: The TVM Solver is a built-in function on graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. A spreadsheet is a separate device that is specifically designed to calculate financial metrics.
Q: Can I use the TVM Solver to calculate the internal rate of return (IRR)?
A: Yes, you can use the TVM Solver to calculate the internal rate of return (IRR).
Q: How do I calculate the IRR using the TVM Solver?
A: To calculate the IRR using the TVM Solver, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the investment (in this case, the amount invested) + FV: The future value of the investment (in this case, the amount returned)
Q: What is the difference between the TVM Solver and a financial modeling software?
A: The TVM Solver is a built-in function on graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. A financial modeling software is a separate device that is specifically designed to calculate financial metrics.
Q: Can I use the TVM Solver to calculate the net present value (NPV)?
A: Yes, you can use the TVM Solver to calculate the net present value (NPV).
Q: How do I calculate the NPV using the TVM Solver?
A: To calculate the NPV using the TVM Solver, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the investment (in this case, the amount invested) + FV: The future value of the investment (in this case, the amount returned)
Q: What is the difference between the TVM Solver and a financial calculator with a built-in NPV function?
A: The TVM Solver is a built-in function on graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. A financial calculator with a built-in NPV function is a separate device that is specifically designed to calculate financial metrics.
Q: Can I use the TVM Solver to calculate the payback period?
A: Yes, you can use the TVM Solver to calculate the payback period.
Q: How do I calculate the payback period using the TVM Solver?
A: To calculate the payback period using the TVM Solver, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the investment (in this case, the amount invested) + FV: The future value of the investment (in this case, the amount returned)
Q: What is the difference between the TVM Solver and a financial calculator with a built-in payback period function?
A: The TVM Solver is a built-in function on graphing calculators that allows you to calculate various financial metrics such as the present value, future value, and amortization schedule of a loan. A financial calculator with a built-in payback period function is a separate device that is specifically designed to calculate financial metrics.
Q: Can I use the TVM Solver to calculate the return on equity (ROE)?
A: Yes, you can use the TVM Solver to calculate the return on equity (ROE).
Q: How do I calculate the ROE using the TVM Solver?
A: To calculate the ROE using the TVM Solver, you need to plug in the following values: + N: The number of periods (in this case, the number of months) + I/Y: The interest rate per period (in this case, the APR divided by 12) + PMT: The monthly payment amount + PV: The present value of the investment