5: Time Value of Money Calculations 61
6LQFHWKHFDOFXODWHGYDOXHRI1LVEHWZHHQDQGLWZLOOWDNHVL[\HDUVRI
DQQXDOFRPSRXQGLQJWRDFKLHYHDEDODQFHRIDWOHDVW&DOFXODWHWKH
DFWXDOEDODQFHDWWKHHQGRIVL[\HDUV
Example: An Individual Retirement Account. <RXRSHQHGDQ
LQGLYLGXDOUHWLUHPHQWDFFRXQWRQ$SULOZLWKDGHSRVLWRI
LVGHGXFWHGIURP\RXUSD\FKHFNDQG\RXDUHSDLGWZLFHDPRQWK
7KHDFFRXQWSD\VDQQXDOLQWHUHVWFRPSRXQGHGVHPLPRQWKO\+RZ
PXFKZLOOEHLQWKHDFFRXQWRQ$SULO"
6HWWR(QGPRGH3UHVV
*O
LIBEGINDQQXQFLDWRULVGLVSOD\HG
P
6.00
6HWV
P
WR\HDUV
/
3,035.28
&DOFXODWHVDPRXQW\RX
FDQZLWKGUDZDIWHU
\HDUV
1234
I/YR = 6.3%
N = 360 (15 years
×
24 half-months)
(Half-months periods)
P/YR=24
PV = -2,000.00
PMT = -80.00
FV= ?
360
...
.book Page 61 Wednesday, June 21, 2000 5:19 PM