Applications
stroyed when the final key (the one that triggers the result) is pressed. The information is entered as follows:
1 Enter number of periods, press n.
2 Enter amount of payment, press PMT.
3 Enter future value, press FV.
4 Press i to obtain required rate of interest per period.
Sample Case: What annual rate of interest must be obtained to amass a total of $10,000 in 10 years on an annual investment of $600?
Solution
 Enter:  See Displayed:  
 
10 n 600 PMT 10000 FV i   
  10.93
  % annual interest rate

Payment Amount for Sinking Fund

This calculation finds the periodic payment to be set aside for a sinking fund, when the future value, number of periods, and interest rate per period are known. Enter information as follows:
1 Enter number of periods, press n.
2 Enter interest rate per period, press PMT.
3 Enter future value, press FV.
4 Press PMT to obtain amount of periodic payment for sinking fund.
Sample Case: As a farsighted parent, you are planning ahead for your children’s education. How much money must be invested each month to amass $10,000 in 10 years, when interest is earned at a rate of 5 % compounded monthly?
Solution
 Enter:  See Displayed:  
 
10 SAVE  12 × n   
  120.00
  number of periods (months) in 10 years
 
5 SAVE  12 ÷ i   
  0.42
  % monthly interest rate
 
10000 FV PMT   $
  64.40
  monthly payment for sinking fund

Present Value of Annuity

This calculation finds the principal (present value) when the number of periods, interest rate per period, and amount of the periodic payment are known. Information is entered as follows:
30