Using the TVM Solver
In This Chapter
Understanding the TVM variables
Calculating mortgages and loans
Graphing an amortization table
Making compound interest work for you
Do you understand how your money works? Money can work against you when you take on a loan or mortgage. Money can also work for you when you save and invest money. Using the built-in functionality of the TVM Solver, you can learn to set savings goals and use the power of compound interest to help you reach your goals. I love using the TVM Solver to figure out how much I need to save in order to become a millionaire! If that sounds interesting, keep reading.
Calculating Mortgages and Loans
Before you start using the TVM Solver, you need to know a few of the basics. Here is a list of TVM variables:
N: Total number of payments. An easy way to calculate this is to multiply the P/Y times the number of years.
I%: Annual interest rate. Always enter this rate as a percentage!
PV: Present value. This is how much ...