Time Value of Money Calculations68
Figure 11 Cash flow diagram (Calculate the number of years)
Since this account has no regular payments (PMT = 0), the payment mode (End or Begin) is
irrelevant.
Since the calculated value of N is between 5 and 6, it will take six years of annual
compounding to achieve a balance of at least 3,000. Calculate the actual balance at the end
of six years.
Table 6-8 Calculating the number of years
Keys Display Description
]OJ
0.00 Clears TVM memory.
J\Í
1. 0 0 S e t s P/YR to 1 since interest is
compounded annually.
G:::yÏ
-2,000.00 Stores amount paid out for the
first deposit.
D:::É
3,000.00 Stores the amount you wish to
accumulate.
j7GÒ
7.20 Stores annual interest rate.
Ù
5.83 Calculates the number of years it
takes to reach 3,000.
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