CHAPTER 3. FINANCIAL CALCULATOR MODE
COMP N
N = 9.5844 appears on the screen. Because the number of compounding periods is half
yearly, divided the answer by two.
Press
÷ 2 = .
4.79 appears on the screen.
3.3 Annuities
3.3.1 Present value
P = Ra
n i
= R
(1+i)
n
−1
i(1+i)
n
• Calculate the present value of R1 600 quarterly payments for five years at an interest
rate of 20% per year, compounded quarterly.
P = 1 600a
5×4 0,20÷4
= 19 939,54.
The present value is R19 939,54.
Key in as
2ndF CA
2ndF P/Y 4 ENT
ON/C
+/− 1 600 PMT
5
2ndF ×P/Y N
20
I/Y
COMP PV
The answer is 19 939,54.
3.3.2 Future value
S = Rs
n i
= R
(1+i)
n
−1
i
.
26
To Next Page
Loading...
