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CD
Enter number of periods per
year,
press
STO
g
.
o
Enter 100, press
SAV
E
+
II.
@)
Enter effective
an
nual
rate, press
+
. .
..
G)
Press
RCL
X
to get nominal
rate.
Sample Case: Find the nominal rate if the effective
annual
rate is
12.55
%,
compounded quarterly (4
periods).
Solution
Enter:
4
STO
g
100
SAVE
+
II
See Displayed:
12.55
+ . . .
RCL
X -
_
%
nominal rate
of interest
Annuities
Future Value ot Annuity (Sinking Fund)
This calculation finds the amount
to
be amassed at the end of a specified
number
of periods where the amount of the periodic payment and
in-
terest rate per period are known. Information is entered as follows:
CD
Enter number of periods,
press
g.
o
Enter interest rate per
period,
press
•
.
@)
Enter amount of periodic
payment,
press
III.
G)
Press" to obtain future value.
Sample
Case:
How much money will
you
have at the end of 5 years
if you deposit
$250
per month in
a savings
account
at
6% interest
compounded monthly?
Solution
Enter:
12
SAVE+
5
X
g _
See Displayed:
1
1 1
.number of periods
(months)
in 5 years
6
SAV
E+
12 . ; . . -
111.%
interest rate
per month
250
1III ..
- - - - - - 1
.. ~
$
_
value
in 5
years,
compounded monthly
Rate ot Interest tor Sinking
Fund
This calculation finds the rate of interest for a sinking fund when the
amount to be amassed
(future value),
the number of time
periods,
and
the periodic payment
amount are
known. The formula uses the con-
stant storage
location, therefore,
any value stored there will
be
de-
29
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