Texas Instruments BAIIPlus User Manual - Page 41

Example: Computing Regular Deposits for a Specified Future Amount

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To Compute loan amount. Compute down payment Press % . PV= H 15,100 S N Display 13,441.47 -1,658.53 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. To Press Set all variables to defaults. & } ! Set payments per year to 12. & [ 12 ! Set compounding periods to 4. # 4 ! Set beginning-of-period payments. &] &V Return to standard-calculator & U mode. Enter number of deposits using 10 & Z , payment multiplier. Enter interest rate. .5 - Enter future value. 25,000 0 Compute deposit amount. % / Display RST 0.00 P/Y= C/Y= 12.00 4.00 BGN 0.00 N= 120.00 I/Y= 0.50 FV= 25,000.00 PMT= -203.13 Answer: You must make monthly deposits of $203.13. Time-Value-of-Money and Amortization Worksheets 37

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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
0
FV=
25,000.00
Compute deposit amount.
% /
PMT=
-203.13
To
Press
Display