Table of Contents
Advertisement
Sample Case: What annual rate of interest must be obtained in order
to amass a total of $10,000 in 10 years on an investment of
$6,000?
Solution
Enter:
See Displayed:
10
•
6000
1110000".-
_
%
annual
interest
rate
What if the interest were compounded
daily
(assume 365 days per year)?
Enter:
See Displayed:
10
SAV
E
+
365
X •
•
_
number
of periods
(days) in 10 years
6000
1110000 . . •
•
_
%
daily interest rate
(rounded to two
decimal places)
365
XI
- - - - - - - - - - - . .
_
% annual interest rate
if compounded daily
Number of Periods for Compounded Amount
This calculation finds the number of periods required to amass a given
sum at a specified rate on a given investment. Information is entered
as follows:
Q)
Enter rate per period, press
•
.
o
Enter present value, press
II.
@
Enter
future
value,
press".
o
Press. to obtain number of periods.
@)
If desired, enter number of periods per year, press
~
to
convert
periods to years.
Sample Case: You now have $887 in a savings account in your bank
which is paying 5.4% compounded monthly. How long will it take to
reach one million dollars?
Solution
Enter:
5.4
SAVE
+
12
See Displayed:
.887111000000". _
_
number of
months
12
~]
------------
••
_
number of years
Compounded Amount of Interest Earned
This calculation finds the interest earned (dollar amount),
rather
than rate of interest, on a fixed amount when the
interest is
com-
pounded at a specified rate and period. Information is entered as follows:
27
Advertisement
Table of Contents
