3.3. ANNUITIES
• Determine the future value of R400 monthly payments made for five years at 16%
interest per year, compounded monthly.
S = 400s
5×12 0,16÷12
= 36 414,21
The future value is R36 414,21.
Key in as
2ndF CA
2ndF P/Y 12 ENT
ON/C
+/− 400 PMT
5
2ndF ×P/Y N
16
I/Y
COMP FV
The answer is 36 414,21.
3.3.3 Amortisation
• Draw up an amortisation schedule for a loan of R5 000 which is repaid in annual
payments over five years at an interest rate of 15% per year.
P = Ra
n i
5 000 = Ra
5 0,15
R = 1 491,58
Key in as
2ndF CA
2ndF P/Y 1 ENT
ON/C
+/− 5 000 PV
5
2ndF ×P/Y N
15
I/Y
COMP PMT
27
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