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Applications
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Solution
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| | Enter: | | | See Displayed: | | |
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number of periods (quarters) in 7 years
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% interest rate per quarter
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value in 7 years compounded quarterly
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Present Value of Compounded Amount
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This calculation finds the present value of a compounded amount when the
future value, number of periods and interest rate are known.
Information is entered as follows:
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 1 |
Enter number of time periods, press n.
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Enter rate per period, press i.
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Enter future value, press FV.
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Press PV to obtain the present value (principal).
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Sample Case: If you wanted to establish a fund of $15,000 for an
extended vacation which you planned to take in 2 years, what would be
the investment required now if
money is worth 4% compounded quarterly?
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Solution
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| | Enter: | | | See Displayed: | | |
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number of periods (quarters) in 2 years
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% interest rate per quarter
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principal (present value) to be invested
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Rate ot Interest tor Compounded Amount
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This calculation finds the interest rate needed to amass a given sum if a
fixed amount is invested for a specified period. Information is entered
as follows:
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Enter the number of periods, press n.
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Enter the amount of investment, press PV.
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Enter the sum required in the future, press FV.
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Press i to obtain the required interest rate per period.
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