Financial Calculators Tutorial by Norman Baker:

Here is a short tutorial on the financial calculators in Truth Concepts.  Future Value, Present Value, Payment, Interest Rate and Time Period Calculator.  I can size the calculator by moving my cursor to the edge bottom or side and stretching.  I can make it as big as I want to or reduce to an icon.  I can memorize the short cut keys.

Rate Calculator:  We’re looking for a future value of \$1,000,000 as hypothetical suppose we have a \$100,000 of cash to start with we’re going to make a \$10,000 payment and we’d like to have \$1,000,000 and we’d like to do that in 20 years.  So the calculator solves for interest rate and tells me that 8.27 is the percent I would have to earn in order to have my million dollars.

Present Value:  I double clicked on the “Present Value” in the Rate Calculator and now I have a Present Value Calculator up.  Our future value is \$1,000,000 we’ve got an annual payment of \$10,000 and annual rate of 8.27% and we’ve got 20 years it gives us a present value that is less than our \$100,000 to start with the reason for that is this decimal point the output has 13 decimal points, by right clicking on output section I get the whole number and paste and that should get the \$100,000 present value to the penny.

Payment Calculator:  Solving for payment, Present value again \$100,000 future value is a million annual rate is still in memory, left click right click and paste to give the 8.27% rounded but I have all the decimal points in.  I’m looking for a 20 year period and it tells me in order to have all those other assumptions I’ve got to have an annual payment of \$10,000.

Future Value:  Click and Size again for a new calculator.  Again present value number is \$100,000, \$10,000 payment, rate is in memory, over 20 year period this gives us our \$1,000,000.

Time Period or Number of Years:  Click on Years.  You’ve got your \$100,000 you’ve started with, \$10,000 annual payment will produce a million dollars with the pasted interest rate in and it tells us that it takes 20 years to accomplish.

This scenario I could click on file save, give it a name, save it and it will bring those calculators up in that particular format just like we have it on the screen.