User Manual

66 Other Financial Tools
BEAR-CH3.DOC BA Real Estate Guidebook Bob Fedorisko Revised: 08/29/96 9:19 AM Printed: 09/28/99 1:21 PM
Page 66 of 20
Steps Keystrokes Display
Clear TVM values.
#
-
0.00
Set beginning-of-
period payments.
#
,
BGN
0.00
Set 12 payments
per year.
#
+
12
j
BGN
P/Y = 12.00
BGN
C/Y = 12.00
Set 12 compounding
periods per year.
j
BGN
12.00
Calculate future
v
alue of the account.
20
0
7.5
1
200
t
3
$
4
BGN
TRM= 20.00
BGN
I% = 7.50
BGN
PMT=
-
200.00
BGN
FV = 111,438.31
Note: The quarterly compounding example is shown on
page 68.
Saving for the Future with Regular Deposits
You wish to invest $200 at the beginning of each month
in a retirement plan that earns an annual interest of 7.5%
compounded monthly. What will the account balance (FV)
be at the end of 20 years if compounded monthly? If
compounded quarterly?
Example 1:
Compounded
Monthly