Financial Calculations Worksheet Page 11
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
3019 - 3
Compound Interest Calculations
k k k k k Savings
u u u u u Future value
Example
Calculate the future value after 7.6 years for a principal of $500
and an interest rate of 6%, compounded annually.
Perform the following key operations from the input screen.
h.gw(
n
= 7.6 years)
gw(
I
= 6%)
-faaw(
PV
= –500)
aw(
PMT
= 0)
aw(
FV
= 0)
bw
bw(Annual compounding)
5(
FV
)
u u u u u Principal
Example
Calculate the principal required at 5.5%, compounded monthly,
to produce a total of $20,000 in a year.
Perform the following key operations from the input screen.
bw(Input
n
= 1.)
f.fw(
I
= 5.5%)
c
aw(
PMT
= 0)
caaaaw(
FV
= 20,000)
bw
bcw(Monthly compounding)
3(
PV
)
u u u u u Compound interest rate
Example
Calculate the interest required, compounded monthly, to
produce a total of $10,000 in 10 years on an initial investment
of $6,000.
In the set up screen, specify “Begin” for Payment and then press J.
P.7
331
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Education