Sharp EL738C EL-738 Operation Manual - Page 27

Calculating future value - com

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3 Calculating future value You will pay $200 at the end of each month for the next three years into a savings plan that earns 6.5% compounded quarterly. What amount will you have at the end of period if you continue with the plan? FV = ? PV = 0 I/Y = 6.5% (quarterly) ...... PMT = -$200 PMT = -$200 N = 12 × 3 years = 36 Procedure Set all the variables to default values. Key operation . b Display 000 Make sure ordinary annuity is set (BGN is not displayed). Set the number of pay- . w 12 Q ments per year to 12. Set the number of com- i 4 Q pounding periods per year to 4. Quit the P/Y and C/Y s settings. Calculate the total num- 3 . < N ber of payments and store in N. Enter the present value. 0 v Enter payment. , 200 u Enter the annual inter- 6.5 f est rate. Calculate the future value. @ T P/Y= 1200 C/Y= 400 000 ANS~N 3600 -~PV 000 (-2--)~PMT -20000 6.5~I/Y 650 FV= 792219 Answer: You will have $7,922.19 at the end of the three-year period. 26

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26
Calculating future value
You will pay $200 at the end of each month for the next three
years into a savings plan that earns 6.5% compounded quar-
terly. What amount will you have at the end of period if you
continue with the plan?
N = 12
×
3 years = 36
......
PV = 0
PMT = –$200
I/Y = 6.5% (quarterly)
FV = ?
PMT = –$200
Procedure
Key operation
Display
Set all the variables to
default values.
.
b
000
Make sure ordinary annuity is set (
BGN
is not displayed).
Set the number of pay-
ments per year to 12.
.
w
12
Q
P/Y=
1200
Set the number of com-
pounding periods per
year to 4.
i
4
Q
C/Y=
400
Quit the P/Y and C/Y
settings.
s
000
Calculate the total num-
ber of payments and
store in N.
3
.
<
N
ANS~N
3600
Enter the present value.
0
v
—~PV
000
Enter payment.
,
200
u
(-2——)~PMT
-20000
Enter the annual inter-
est rate.
6.5
f
6.5~I/Y
650
Calculate the future
value.
@
T
FV=
792219
Answer:
You will have $7,922.19 at the end of the three-year
period.
3