Financial Calculations Worksheet Page 12
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3019 - 3
Compound Interest Calculations
Perform the following key operations from the input screen.
baw(Input
n
= 10.)
c
-gaaaw(
PV
= –6,000)
aw(
PMT
= 0)
baaaaw(
FV
= 10,000)
bw
bcw(Monthly compounding)
2(
I
%)
u u u u u Compound interest period
Example
Calculate the amount of time required to increase an initial
investment of $5,000 to a total of $10,000 at an annual rate of
4%, compounded monthly.
In the set up screen, specify “End” for Payment and then press J.
P.7
Perform the following key operations from the input screen.
c
ew(
I
% = 4)
-faaaw(
PV
= –5,000)
aw(
PMT
= 0)
baaaaw(
FV
= 10,000)
bw
bcw(Monthly compounding)
1(
n
)
u u u u u Installment savings
Example
Calculate (to two decimal places) the principal plus interest for
$250 monthly installments for five years at 6% annual interest,
compounded monthly.
Calculate amounts for when installments are made at the
beginning of each month and at the end of each month.
P.7
In the set up screen, specify “End” for Payment and “Fix2” for Display, and then
press J.
P.6
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