Present Value of Savings
Example: Future Value of Savings
You are opening a savings account that you want to be worth
$10,000 in 20 years. The bank pays 5%, compounded at the end
of each year. How much do you need to deposit now?
Procedure
Set all variables to defaults.
Set payments per year to 1.
Return to calculator mode.
Enter number of payments.
Enter interest rate.
Enter final balance.
Compute future value.
The present value is $3,768.89. This is the amount you need to
deposit.
2: TVM and Amortization Worksheets
Keystrokes
& } !
& [
!
1
& U
,
20
-
5
0
10000
% .
Display
RST
0.00
P/Y=
1.00
0.00
N=
20.00
I/Y=
5.00
FV=
10,000.00
PV=
-3,768.89
39
P
P
P
P
Q