2: TVM and Amortization Worksheets 53
Regular Deposits for a Specified Future Amount
You plan to open a savings account and deposit the same
amount of money at the beginning of each month. In 10 years,
you want to have $25,000 in the account. How much should you
deposit if the annual interest rate is 7% with quarterly
compounding?
C/Y
(compounding periods per year) is automatically set to
equal
P/Y
(payments per year), so you need to set
C/Y
.
Example: Monthly Deposits Compounded Quarterly
Procedure Keystrokes Display
Set all variables to defaults.
&
}
!
RST 0.00
Set compounding periods to 4.
&
[
#
4
!
P/Y=
C/Y=
12.00
4.00
Set beginning-of-period
payments.
&
]
&
V
BGN
Return to calculator mode.
&
U
0.00
Enter number of deposits
using payment multiplier.
10
&
Z
,
N= 120.00
Enter interest rate.
7
-
I/Y= 7.00
Enter future value.
25000
0
FV= 25,000.00
Compute deposit amount.
%
/
PMT= -143.92
You need to make monthly deposits of $143.92.
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