72 5: Time Value of Money
Keys: Display: Description:
"
]
" Displays TVM menu.
@c
#$
5?@2
H<A
0EAH"
Clears history stack and TVM variables.
.
1
Y
e
"
"
#"5?@2 H<A"0EAH"
Sets one compounding
per./yr. (one interest
pmt./yr.). Payment mode
does not matter.
7.2
U
;6@28-&$(" Stores annual interest rate.
2000
&
V
5O8/$K(((&((" Stores amount of deposit.
3000
X
GO8%K(((&((" Stores future account
balance in FV.
T
<8.&*%"
Calculates number of
compounding periods
(years) for the account to
reach $3,000.
There is no conventional way to interpret results based on a non-integer
value (5.83) of N. Since the calculated value of N is between 5 and 6,
it will take 6 years of annual compounding to achieve a balance of at
least $3,000. The actual balance at the end of 6 years can be
calculated as follows:
6
T
<8'&((" Stores a whole number of
years in N.
X
GO8%K(%.&$*" Calculates account balance
after six years.
Example: An Individual Retirement Account (IRA). You opened an IRA
on April 15, 2003, with a deposit of $2,000. Thereafter, you deposit
$80.00 into the account at the end of each half-month. The account
pays 8.3% annual interest, compounded semimonthly. How much
money will the account contain on April 15, 2018?
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