Can I Use a TI-85 as a Financial Calculator?

An expert guide and feasibility checker for using the Texas Instruments TI-85 for finance-related calculations.

TI-85 Financial Feasibility Calculator

What Does “can i use ti-85 as financial calculator” Really Mean?

The question, “can i use ti-85 as financial calculator,” is a common one for students and professionals who own this powerful graphing calculator and are venturing into finance. The short answer is: **yes, but with significant limitations**. The TI-85 is a capable graphing calculator, but it is not a *dedicated* financial calculator. This distinction is critical. Dedicated financial calculators, like the TI BA II Plus, have built-in functions and solvers specifically for common financial problems, most notably the Time Value of Money (TVM) solver.

Using a TI-85 for finance means you will often have to manually input mathematical formulas and use the generic equation solver, rather than using a dedicated, menu-driven application. While it has native functions for Net Present Value (NPV) and Internal Rate of Return (IRR), it lacks the specialized TVM and amortization functions that are the bedrock of most introductory and professional finance work. This guide and calculator are designed to help you understand this trade-off in detail.

The Core Difference: TVM Formula vs. TVM Solver

The biggest hurdle when you use a TI-85 as a financial calculator is handling Time Value of Money (TVM) problems. Dedicated calculators have a “TVM Solver” application where you input the known variables and solve for the unknown one. On the TI-85, you must program the core TVM formula yourself. The most common formula is for Present Value (PV) of an ordinary annuity:

PV = PMT * [ (1 – (1 + i)^-n) / i ]

This formula, and others like it for Future Value (FV), must be entered into the TI-85’s equation solver or programmed in TI-BASIC. This is much more cumbersome and error-prone than using a dedicated solver.

Variables Table

Explanation of variables in the Present Value annuity formula.

Variable	Meaning	Unit	Typical Range
PV	Present Value	Currency ($)	Depends on context
PMT	Periodic Payment	Currency ($)	Depends on context
i	Interest Rate per Period	Percentage (%)	0.01% – 25%
n	Number of Periods	Time (months, years)	1 – 360+

Practical Examples: TI-85 in Action

Example 1: Calculating Net Present Value (NPV) – The Easy Case

A project requires an initial investment of $10,000 and is expected to generate cash flows of $3000, $4000, and $5000 over the next three years. Your discount rate is 8%. The TI-85 handles this well with its built-in `npv(` function.

• Inputs: `npv(8, -10000, {3000, 4000, 5000})`
• Result: The TI-85 would directly calculate the NPV to be approximately $403.49. This is a strength of the TI-85.

Example 2: Calculating a Loan Payment – The Hard Case

You want to find the monthly payment on a 5-year, $20,000 car loan with a 6% annual interest rate. On a financial calculator, you would enter N=60, I/Y=6, PV=20000, FV=0 and compute PMT. On the TI-85, you need to use the equation solver with the TVM formula manually entered.

• Inputs: You would enter the PV annuity formula into the solver: `20000 = PMT * [ (1 – (1 + 0.005)^-60) / 0.005 ]`. Note you must convert the 6% annual rate to a 0.5% monthly rate (0.005) and 5 years to 60 months.
• Result: After setting up the equation and instructing the solver to solve for the `PMT` variable, it would yield the result of approximately $386.66. The process is significantly more complex than using a investment return calculator with a dedicated TVM solver.

How to Use This TI-85 Feasibility Calculator

Our calculator at the top of this page is designed to give you an instant recommendation on whether you can use a TI-85 as your primary financial calculator.

1. Select Functions: Check the boxes corresponding to the types of financial calculations you expect to perform regularly.
2. Analyze Feasibility: Click the “Analyze Feasibility” button. The tool will process your selections.
3. Review Results: The primary result gives a clear “Yes,” “No,” or “Possible but Not Recommended” verdict. The intermediate results explain the TI-85’s specific capabilities and limitations for each function you selected. The chart provides a visual comparison of the effort required.
4. Copy or Reset: You can copy the detailed explanation to your clipboard or reset the tool to start over.

Key Factors That Affect Using a TI-85 for Finance

1. Built-in Solvers vs. Manual Programming

The single most important factor. The absence of a dedicated TVM solver is the TI-85’s biggest weakness for finance.

2. Frequency and Complexity of Use

For occasional, simple problems, the TI-85 is fine. For frequent, complex financial modeling (e.g., a finance major), it is highly inefficient compared to a TI BA II Plus.

3. Exam and Course Requirements

CRITICAL: Many professional finance exams (like the CFA) and university courses explicitly BAN graphing calculators. Always check your exam’s approved calculator list. The TI-85 is often not permitted where a financial calculator is required.

4. Cash Flow Functions (NPV/IRR)

The TI-85 has built-in `npv()` and `irr()` functions, making it quite competent for capital budgeting and investment analysis tasks that don’t rely on annuities.

5. User’s Programming Comfort

If you are comfortable with programming in TI-BASIC or using the equation solver, the TI-85 becomes more viable. If you are not, the learning curve will be steep.

6. Cost and Availability

If you already own a TI-85, you may want to avoid buying another device. However, a dedicated financial calculator like the TI BA II Plus is relatively inexpensive and a worthwhile investment for serious finance work.

Frequently Asked Questions (FAQ)

1. Does the TI-85 have a TVM solver?

No, it does not. This is the primary difference between the TI-85 and dedicated financial calculators like the TI-83 Plus, TI-84 Plus, and TI BA II Plus.

2. Can the TI-85 calculate Net Present Value (NPV) and Internal Rate of Return (IRR)?

Yes. The TI-85 has built-in `npv()` and `irr()` functions in its CALC menu, which work very well for uneven cash flow analysis.

3. How is the TI-85 different from a TI-83 or TI-84 for finance?

The TI-83 and TI-84 families include a pre-loaded “Finance” application which is a full TVM Solver. This gives them a significant advantage over the TI-85 for financial math.

4. Is the TI-85 allowed on professional finance exams like the CFA or CFP?

Almost certainly no. These exams have a strict list of approved calculators, which typically includes basic financial calculators (like the TI BA II Plus or HP 12C) but prohibits graphing calculators.

5. Can I program financial functions onto a TI-85?

Yes. You can write your own programs in TI-BASIC to create TVM solvers or other functions. You can also find and download programs from calculator communities online.

6. Is it worth buying a TI BA II Plus if I already have a TI-85?

If you are a student majoring in finance, business, or accounting, or a professional who needs financial functions regularly, the answer is a definitive yes. The efficiency and features of a dedicated loan amortization calculator are well worth the low cost.

7. Can I use the TI-85 for basic compound interest?

Yes, easily. A simple compound interest problem (Future Value = Present Value * (1 + rate)^periods) can be typed directly on the home screen without needing special functions.

8. Where are the finance functions on the TI-85?

The main built-in finance functions, `npv(` and `irr(`, are found under the `[2nd][CALC]` menu. Other financial calculations must be done by entering formulas manually into the home screen or the `[2nd][SOLVER]`.