Saving For The Future With Regular Deposits - Texas Instruments BA Real Estate User Manual

Saving for the Future with Regular Deposits

Example 1:
Compounded
Monthly
66 Other Financial Tools
You wish to invest $200 at the beginning of each month
in a retirement plan that earns an annual interest of 7.5%
compounded monthly. What will the account balance (FV)
be at the end of 20 years if compounded monthly? If
compounded quarterly?
Steps
Clear TVM values.
Set beginning-of-
period payments.
Set 12 payments
per year.
Set 12 compounding
periods per year.
Calculate future
value of the account.
Note: The quarterly compounding example is shown on
page 68.
Keystrokes
12
20
7.5
200
Display
0.00
BGN
0.00
BGN
P/Y = 12.00
BGN
C/Y = 12.00
BGN
12.00
BGN
TRM= 20.00
BGN
I% = 7.50
BGN
-200.00
PMT=
BGN
FV = 111,438.31