Example: Computing Present Value In Annuities - Texas Instruments Calculator User Manual

Example: Computing Present Value in Annuities

The Furros Company purchased equipment providing an annual savings
of $20,000 over 10 years. Assuming an annual discount rate of 10%, what
is the present value of the savings using an ordinary annuity and an
annuity due?
Cost Savings for a Present-Value Ordinary Annuity
Cost Savings for a Present-Value Annuity Due in a Leasing
Agreement
To
Set all variables to defaults.
Enter number of payments.
Enter interest rate per
payment period.
Enter payment.
Time-Value-of-Money and Amortization Worksheets
Press
& } !
,
10
-
10
S /
20000
Display
RST
10.00
N=
10.00
I/Y=
-20,000.00
PMT=
0.00



29