Sharp EL-738 Operation Manual page 28

4
You open an account that earns 5% compounded annually. If
you wish to have $10,000 twenty years from now, what amount
of money should you deposit now?
PV = ?
Procedure
Set all the variables to
default values.
Make sure ordinary annuity is set (BGN is not displayed).
Set the number of pay-
ments per year to 1.
The number of compounding periods per year is automatically set to 1.
Press s to exit the P/Y and C/Y settings.
Enter the total number
of payments.
Enter the future value.
Set payment to zero.
Enter the annual inter-
est rate.
Calculate the present
value.
Answer: You should deposit $3,768.89 now.
27
Calculating present value
. b
. w
s
10000
0
u
5
f
@ v
I/Y = 5%
Key operation
1
Q
20
N
T
FV = $10,000
N = 20 years
Display
000
P/Y=
100
2—~N
2000
1————~FV
1000000
—~PMT
000
5~I/Y
500
PV=
-376889