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Time-Value-of-Money and Amortization Worksheets 37
Answer: You can borrow $13,441.47 with a down payment of $1,658.53.
Example: Computing Regular Deposits for a
Specified Future Amount
You plan to open a savings account and deposit the same amount of
money at the beginning of each month. In 10 years, you want to have
$25,000 in the account.
How much should you deposit if the annual interest rate is 0.5% with
quarterly compounding?
Note:
Because C/Y (compounding periods per year) is automatically set
to equal P/Y (payments per year), you must change the C/Y value.
Answer: You must make monthly deposits of $203.13.
Compute loan amount. % .
PV=
13,441.47
Compute down payment H
15,100 S N
-1,658.53
To Press Display
Set all variables to defaults. & } !
RST 0.00
Set payments per year to 12. & [ 12 !
P/Y=
12.00
Set compounding periods to 4. #
4 !
C/Y=
4.00
Set beginning-of-period
payments.
& ] & V
BGN
Return to standard-calculator
mode.
& U
0.00
Enter number of deposits using
payment multiplier.
10 & Z ,
N=
120.00
Enter interest rate.
.5 -
I/Y=
0.50
Enter future value.
25,000 0
FV=
25,000.00
Compute deposit amount. % /
PMT=
-203.13
To Press Display