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Applications
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stroyed when the final key (the one that triggers the result) is pressed. The information is entered as follows:
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 1 |
Enter number of periods, press n.
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Enter amount of payment, press PMT.
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Enter future value, press FV.
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Press i to obtain required rate of interest per period.
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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?
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Solution
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| | Enter: | | | See Displayed: | | |
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% annual interest rate
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Payment Amount for Sinking Fund
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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:
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| 1 |
Enter number of periods, press n.
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| 2 |
Enter interest rate per period, press PMT.
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Enter future value, press FV.
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Press PMT to obtain amount of periodic payment for sinking fund.
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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?
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Solution
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number of periods (months) in 10 years
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% monthly interest rate
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monthly payment for sinking fund
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Present Value of Annuity
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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:
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