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Solution
Enter:
See Displayed:
7
SAV
E
+
4
x
1 i I - - - - -....
~
_
number
of periods
(quarters)
in 7 years
6
SAVE
+
4
. - - - - -....
~
_
%
interest
rate
per
quarter
500
1I11---------i.~
$
_
value in 7 years
compounded
quarterly
Present Value
of
Compounded Amount
This calculation finds the present value
of
a compounded
amount
when
the future
value,
number of periods and interest rate are
known.
In-
formation
is
entered as
follows:
<D
Enter number of time periods,
press
iii.
®
Enter rate per period,
press •
.
@
Enter future value,
press
II.
o
Press
II
to obtain the present value
(principal).
Sample Case:
If
you wanted to establish a fund of $15,000 for an ex-
tended
vacation which you planned to take in 2 years, what would be
the investment required now if money is worth 4
%
compounded
quarterly?
Solution
Enter:
See Displayed:
2
SAVE
+
4
X
1iI-------i.~
number of periods
(quarters)
in 2 years
4
SAV
E
+
4
•
-------i~
•
•• •
%
interest rate per
quarter
150001111
•
$
• • • •
principal
(present
value)
to be
invested
Rate ot Interest
tor
Compounded Amount
This calculation finds the interest rate needed to amass a given sum if a
fixed amount
is
invested for a
specified
period. Information is
entered
as follows:
<D
Enter
the
number of periods,
press
iii.
®
Enter
the
amount of investment, press
II.
@
Enter the sum required in
the
future, press
II.
o
Press. to obtain the
required
interest rate per
period.
26
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