28
Specifying pa
yments due (
.
"
)
This calculator can select ordinar
y ann
uity or ann
uity due de-
pending on the regular cash fl
o
w
(pa
yment) conditions
.
Or
dinar
y ann
uity (END):
This is the def
ault setting f
or fi
nancial calculations
.
BGN
is not
displa
y
ed.
A regular cash fl
o
w
(pa
yment) is receiv
ed at end of
each pa
yment per
iod.
Often applied to loan calculations
, etc.
Ann
uity due (BGN):
BGN
appears on the displa
y. A regular cash fl
o
w
(pa
yment) is
receiv
ed at the beginning of each pa
yment per
iod.
Often applied
to the fi
nance lease of an asset.
T
o
toggle betw
een ordinar
y ann
uity and ann
uity due
, press
.
"
.
Note:
The abo
v
e
selection only aff
ects the
TVM solv
er
.
Or
dinar
y ann
uity
Y
our compan
y wishes to accum
ulate a fund of $300,000 o
ver the
ne
xt 18 months in order to open a second location.
At the end of
each month, a fi
x
ed amount will be in
vested in a mone
y mar
k
et
sa
vings account with an in
vestment dealer
. What should the
monthly in
vestment be in order to reach the sa
vings objectiv
e
, as-
suming the account will ear
n 3.6% interest compounded monthly?
N = 18
PV = 0
FV = $300,000
PMT = ?
......
I/Y = 3.6%
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=
1
200
The n
umber of compounding per
iods per y
ear is automatically set to
12.
Press
s
to e
xit the P/Y and C/Y settings
.
1
3 Financial FunctionsCurrent.indd 28
06.7.12 3:53:24 PM
