A Compound Interest Calculation - Canon Financial Manager Instructions Manual

A. Compound Interest Calculation
The present value, future value, or the
number of periods are calculated by using the
El ,
EJ ,
0 ,
and
0
keys. These calcula-
tions are based on the following equation:
FV=
i )
N
I+IOO
When: FV: The accumulated balance or
future value
PV: The deposit amount or present
value
i: The periodic interest rate
N: The number of periods or
amount of time
Calculsting Futur® VahJes
(Examp~e
1)
What would the accumulated balance be if
$5,000 were left on deposit in a savings ac-
count for five years at an annual interest rate
of 6.5% compounded monthly?
PV
FV
N
5000 ? 6.5/12 5X 12
Operation Display Comments
MODE
Set the mode at
0
INT
INT
0~
0.
Clear the data
memorres
5000EJ 5000.
Input the present
value
6.5[]1280
0.541666666
Input the
interest rate
501280
60.
Input the number
of periods
DEl
6914.0866 0 I
Accumulated
balance($)
30 31