6LQFHWKHFDOFXODWHGYDOXHRI1LVEHWZHHQDQGLWZLOOWDNHVL[\HDUVRI DQQXDOFRPSRXQGLQJWRDFKLHYHDEDODQFHRIDWOHDVW&DOFXODWHWKH DFWXDOEDODQFHDWWKHHQGRIVL[\HDUV

/￿P 6.00

3,035.28

6HWVPWR\HDUV

&DOFXODWHVDPRXQW\RX FDQZLWKGUDZDIWHU \HDUV

Example: An Individual Retirement Account. <RXRSHQHGDQ LQGLYLGXDOUHWLUHPHQWDFFRXQWRQ$SULOZLWKDGHSRVLWRI LVGHGXFWHGIURP\RXUSD\FKHFNDQG\RXDUHSDLGWZLFHDPRQWK 7KHDFFRXQWSD\VDQQXDOLQWHUHVWFRPSRXQGHGVHPLPRQWKO\+RZ PXFKZLOOEHLQWKHDFFRXQWRQ$SULO"

FV= ?

 

 

 

 

 

I/YR = 6.3%

 

 

 

 

 

 

N = 360 (15 years ￿24 half-months)

 

 

 

 

 

 

P/YR = 24

 

(Half-months periods)

 

 

. . .

 

 

 

 

 

 

 

 

 

 

1

2

3

4

 

 

 

360

PMT = -80.00

PV = -2,000.00

6HWWR(QGPRGH3UHVV*OLIBEGINDQQXQFLDWRULVGLVSOD\HG

5: Time Value of Money Calculations 61

Page 61
Image 61
HP F1902-90001 manual FV= ? YR = 6.3%, Yr =, PMT = PV = -2,000.00