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26
Calculating future value
You will pay $200 at the end of each month for the next three
years into a savings plan that earns 6.5% compounded quar-
terly. What amount will you have at the end of period if you
continue with the plan?
N = 12 × 3 years = 36
......
PV = 0
PMT = –$200
I/Y = 6.5% (quarterly)
FV = ?
PMT = –$200
Procedure Key operation Display
Set all the variables to
default values.
.
b
000
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of pay-
ments per year to 12.
.
w
12
Q
P/Y=
1200
Set the number of com-
pounding periods per
year to 4.
i
4
Q
C/Y=
400
Quit the P/Y and C/Y
settings.
s
000
Calculate the total num-
ber of payments and
store in N.
3
.
<
N
ANS~N
3600
Enter the present value.
0
v
—~PV
000
Enter payment.
,
200
u
(-2——)~PMT
-20000
Enter the annual inter-
est rate.
6.5
f
6.5~I/Y
650
Calculate the future
value.
@
T
FV=
792219
Answer: You will have $7,922.19 at the end of the three-year
period.
3
3FinancialFunctionsCurrent.indd263FinancialFunctionsCurrent.indd26 06.7.108:38:17PM06.7.108:38:17PM
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