2: TVM and Amortization Worksheets
39
Present Value of Savings
Example: Future Value of Savings
You are opening a savings account that you want to be worth
$10,000 in 20 years. The bank pays 5%, compounded at the end
of each year. How much do you need to deposit now?
Procedure
Keystrokes
Display
Set all variables to defaults.
&
}
!
RST
0.00
Set payments per year to 1.
&
[
1
!
P/Y=
1.00
Return to calculator mode.
&
U
0.00
Enter number of payments.
20
,
N=
20.00
Enter interest rate.
5
-
I/Y=
5.00
Enter final balance.
10000
0
FV=
10,000.00
Compute future value.
%
.
PV=
-3,768.89
The present value is $3,768.89. This is the amount you need to
deposit.
