User Manual

2: TVM and Amortization Worksheets 39

Present Value of Savings

Example: Future Value of Savings

You are opening a savings account that you want to be worth

$10,000 in 20 years. The bank pays 5%, compounded at the end

of each year. How much do you need to deposit now?

Procedure Keystrokes Display

Set all variables to defaults.

}

RST 0.00

Set payments per year to 1.

[

P/Y= 1.00



Return to calculator mode.

0.00

Enter number of payments.

N= 20.00



Enter interest rate.

I/Y= 5.00



Enter final balance.

10000

FV= 10,000.00



Compute future value.

PV= -3,768.89



The present value is $3,768.89. This is the amount you need to

deposit.