1.Because the compounding periods and the withdrawal periods are not coincident, you must first convert the nominal interest rate to one in terms of the withdrawal periods. You can do this using the ICNV menu, as explained on page 87, “Compounding Periods Different from Payment Periods.”
2.The rest of the calculation is a straightforward TVM problem. Remember that money deposited is paid out and therefore negative; money withdrawn is received and therefore positive.
Step 1: Find the adjusted nominal interest rate.
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Step 2: Calculate the future values.
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14: Additional Examples 201
File name : | Print data : 2003/7/11 |