331
kk
kk
k Savings
uu
uu
uFuture value
Example Calculate the future value after 7.6 years for a principal of $500
and an interest rate of 6%, compounded annually.
Perform the following key operations from the input screen.
h.gw(n = 7.6 years)
gw(I = 6%)
-faaw(PV = –500)
aw(PMT = 0)
aw(FV = 0)
bw
bw(Annual compounding)
5(FV)
uu
uu
uPrincipal
Example Calculate the principal required at 5.5%, compounded monthly,
to produce a total of $20,000 in a year.
Perform the following key operations from the input screen.
bw(Input n = 1.)
f.fw(I = 5.5%)
c
aw(PMT = 0)
caaaaw(FV = 20,000)
bw
bcw(Monthly compounding)
3(PV )
uu
uu
uCompound interest rate
Example Calculate the interest required, compounded monthly, to
produce a total of $10,000 in 10 years on an initial investment
of $6,000.
In the set up screen, specify “Begin” for Payment and then press J.
Compound Interest Calculations 19 - 3
P.7
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