Texas Instruments BA-2-PLUS Example: Computing Regular Deposits for a Specified Future Amount

Time-Value-of-Money and Amortization Worksheets 37
Answer: You can borrow $13,441.47 with a down payment of $1,658.53.
Example: Computing Regular Deposits for a
Specified Future Amount
You plan to open a savings account and deposit the same amount of
money at the beginning of each month. In 10 years, you want to have
$25,000 in the account.
How much should you deposit if the annual interest rate is 0.5% with
quarterly compounding?
Note: Because C/Y (compounding periods per year) is automatically set
to equal P/Y (payments per year), you must change the C/Y value.
Answer: You must make monthly deposits of $203.13.
Compute loan amount. % . PV= 13,441.47
Compute down payment H 15,100 S N -1,658.53
To Press Display
Set all variables to defaults. & } ! RST 0.00
Set payments per year to 12. & [ 12 !P/Y= 12.00
Set compounding periods to 4. # 4 !C/Y= 4.00
Set beginning-of-period
payments.
& ] & V BGN
Return to standard-calculator
mode.
& U 0.00
Enter number of deposits using
payment multiplier.
10 & Z , N= 120.00
Enter interest rate. .5 -I/Y= 0.50
Enter future value. 25,000 0FV= 25,000.00
Compute deposit amount. % / PMT= -203.13
To Press Display