User Manual

20060301

15-3 Compound Interest

Compound Interest lets you calculate interest based on compounding parameters you

specify.

Compound Interest Fields

The following fields appear on the Compound Interest calculation page.

Field Description

N Number of installment periods

% Annual interest rate (as a percent)

PV Present value (initial investment)

PMT Amount paid each period

FV Future value

P/Y Number of installment periods per year

C/Y Number of times interest is compounded per year

Financial Application Default Setup for Examples

You can use the [Format] tab to change the following settings.

Odd Period: Compound (CI)

Payment Date: End of period

Tip

• You can look at the status bar to see if it displays “CI” and “End”. If those are not displayed, you

can tap the status bar to switch the settings.

Example 1

What is the future value (FV) on a principal amount of $1,000 (PV = −1000) invested or

borrowed for four years at 6% per annum, compounded yearly (C/Y = 1)? The entire payment

is due at the end of three years so the amount paid each year (PMT) is 0 and the number of

installment periods per year (P/Y) can be 1.

15-3-1

Compound Interest