26
Calculating future v
alue
Y
ou will pa
y $200 at the end of each month f
or the ne
xt three
y
ears into a sa
vings plan that ear
ns 6.5% compounded quar-
ter
ly
. What amount will y
ou ha
v
e
at the end of per
iod if y
ou
contin
ue with the plan?
N = 12
×
3 y
ears = 36
......
PV = 0
PMT = –$200
I/Y = 6.5% (quar
ter
ly)
FV = ?
PMT = –$200
Pr
ocedure
K
e
y
operation
Displa
y
Set all the v
a
riab
les to
def
ault v
alues
.
.
b
000
Mak
e sure ordinar
y ann
uity is set (
BGN
is not displa
y
ed).
Set the n
umber of pa
y-
ments per y
ear to 12.
.
w
12
Q
P
/Y=
12
00
Set the n
umber of com-
pounding per
iods per
y
ear to 4.
i
4
Q
C/Y=
4
00
Quit the P/Y and C/Y
settings
.
s
000
Calculate the total n
um-
ber of pa
yments and
store in N.
3
.
<
N
ANS~N
3
600
Enter the present v
alue
.
0
v
—~PV
000
Enter pa
yment.
,
200
u
(-
2
——)~PMT
-
2
0000
Enter the ann
ual inter-
est r
ate
.
6.5
f
6.5~I/Y
650
Calculate the future
v
alue
.
@
T
FV=
792219
Ans
wer:
Y
ou will ha
v
e
$7,922.19 at the end of the three-y
ear
per
iod.
3
3 Financial FunctionsCurrent.indd 26
06.7.10 8:38:17 PM