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#11




I believe the tvm functions as if sum(all those variables) = 0, so something has to be negative. It has been 3.25 years since I used that calculator though. Also RG<>me and a 2004 thread?

#13




To add to what rgreenlee said . . .
Keep in mind that TVM is based on cash flows between two parties. One flow is "how much now to I send to the other party now"; the other is "how much will I get back later". You set one direction to be a "positive" cash flow; the other direction needs to be "negative". So the sign is just an indication of which direction the money is going.
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#14




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is the use of the calculator for this problem just a creative approach? How does the context of cash flow fit into the problem? This is what's in my head right now: I get a payment of 121 from a bank immediately, and 121 a year later, am I then giving 144 back to the bank at end of year two and three? if so why? 
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