Example: Saving With Monthly Deposits - Texas Instruments Calculator User Manual

To
Return to standard-calculator
mode
Enter number of payments using
payment multiplier.
Enter interest rate.
Enter loan amount.
Compute payment.
Your monthly payment is $26.72.
Answer:

Example: Saving With Monthly Deposits

Note: Accounts with payments made at the beginning of the period are
referred to as annuity due accounts. Interest begins accumulating earlier
and produces slightly higher yields.
You invest $200 at the beginning of each month in a retirement plan.
What will the account balance be at the end of 20 years, if the fund earns
an annual interest of 7.5 % compounded monthly, assuming beginning-
of-period payments?
To
Set all variables to defaults.
Set payments per year to 12.
Set beginning-of-period
payments.
Return to standard-calculator
mode.
Time-Value-of-Money and Amortization Worksheets
Press
& U
& Z ,
2
-
20
.
525
% /
Press
& } !
& [ !
12
& ] & V
& U
Display
N=
24.00
I/Y= 20.00
PV=
525.00
PMT=
-26.72
Display
RST
P/Y=
12.00
BGN
0.00




0.00

0.00
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