Keys:

Display:

Description:

 

 

 

 

 

 

Displays TVM menu.

 

 

@c

   

Clears history stack and

 

 

 

 

 

 

 

TVM variables.

 

 

 

 

Sets one compounding

 

 

 

 

 

1

 

per./yr. (one interest

e  pmt./yr.). Payment mode does not matter.

7.2

 

 



Stores annual interest rate.

 

 

 

 

 

2000 &



Stores amount of deposit.

 

 

 

3000



Stores future account

 

 

 

 

 

 

 

 

balance in FV.

 

 

 

 

Calculates number of

 

 

 



 

 

 

 

 

 

 

 

compounding periods

 

 

 

 

 

 

 

 

(years) for the account to reach $3,000.

There is no conventional way to interpret results based on a non-integer value (5.83) of N. Since the calculated value of N is between 5 and 6, it will take 6 years of annual compounding to achieve a balance of at least $3,000. The actual balance at the end of 6 years can be calculated as follows:

6



Stores a whole number of

 

 

 

years in N.

 Calculates account balance after six years.

Example: An Individual Retirement Account (IRA). You opened an IRA on April 15, 2003, with a deposit of $2,000. Thereafter, you deposit $80.00 into the account at the end of each half-month. The account pays 8.3% annual interest, compounded semimonthly. How much money will the account contain on April 15, 2018?

72 5: Time Value of Money

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