Savings Calculations - HP 10bII+ User Manual

The value in PMT should always be rounded to two decimal places when calculating FV or
PV to avoid small, accumulative discrepancies between non-rounded numbers and actual
(dollars and cents) payments. If the display is not set to two decimal places, press
\5G
.
Table 6-7 Calculating the final amount
Keys
\}Ì
YgÙ
É
1vÌ4

Savings Calculations

Example: A Savings Account
If you deposit 2,000 in a savings account that pays 7.2% annual interest compounded
annually, and make no other deposits to the account, how long will it take for the account to
grow to 3,000?
Figure 10 Cash flow diagram (Calculate FV)
Display
- 1 ,424.06
48.00
- 1 63,388.39
- 1 64,812.45
Description
Rounds payment to two decimal
places, then stores.
Stores four year term (12 × 4)
that you expect to own house.
Calculates loan balance after
four years.
th
Calculates the total 48
payment (PMT and FV) to pay
off the loan (money paid out is
negative).
Time Value of Money Calculations
67