HP HP-18C - Page 73

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 six years can be calculated:
6 __
...
N=6.1313
F\}=3 .. 1335.28
Stores 6 in N.
Calculates
the balance af-
ter six years.
Example: An Individual Retirement Account (IRA). You opened
an IRA on April 15, 1985, with a deposit of $2,000. Thereafter, you
deposit $80.00 into the account semimonthly . The account pays 8. 3%
annual interest, compounded semimonthly . How much money will
the account contain on April 15, 2000?
Figure 4·9. An IRA
t 2
j
PMT =- 80
PV =- 2,000
I%YR = 8.3
#PjY = 2 x 12
N=
15x12 x 2
360
FV = ?
.I>-
-::.:
c.n
N
o
o
o
4: Time Value of Money 71