Financial Calculators Tutorial

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.

One Response to Financial Calculators Tutorial

1. John Shields says:

I have been working with the calculators and seem to be making some process, but I can not figure our how to load a whole life on the software. I know you showed us in class, but I can not remember. Tried learning through on line tutorials but could not finds any way to do this.
Could you send me a quick guide, as I save it on the hard drive and it won’t move into the truth concepts software.

Thanks
John