## Time Value of Money Solution Grid

Self-Paced Overview

### Using the Solution Grid

#### Problem:

If you invest $10,000 today and want to have $40,000 in 8 years, what rate of interest will you have to earn?

The solution grid:

P/YR |

1 |

N | I/YR | PV | PMT | FV |

8 | ? | 10,000 +/- | 0 | 40,000 |

The answer is: 18.92%

The calculator keystrokes:

Remember that you have to identify your cash inflow and outflow. Should you forget, your calculator will return "no Solution" instead of the answer. (TI BAII Plus: Error 5)