3. On this screen, n = number of interest periods,
I% = annual interest rate, and PV= principal or present
value. Since this interest compounds quarterly for 5
years, enter 5 x 4 as n and the calculator will
automatically convert to the total periods. Fill in the
values as shown on the right, pressing
l after each
entry. Scroll down to pays per year (P/Y) and enter 4
since it is compounded quarterly. Then press
y(FV).
4. There will be $3211.99 in the account after 5 years.
(3b) How to calculate FV of an annuity using the Casio fx-9860GII
Amy is 25 years old and has attended some retirement planning seminars at work. Knowing
she should start thinking about retirement savings early, Amy plans to invest in an annuity
earning 5% interest compounded annually. She plans to save $100 from her monthly
paychecks so that she can make annual payments of $1,200 into the annuity. Use the TVM
calculator to determine the future value of the investment after 35 years
1. From the main menu, highlight the TVM icon
and press l. (If the correct screen does not appear,
press
d until it does. This occurs when the last
operation performed on the calculator was in the same
menu.)
2. Before entering any data the payment needs to be
changed in SET UP. To do this press
Lp and
then press
q(BGN). Press d to return to the
previous screen.
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