User Manual

2: TVM and Amortization Worksheets 53

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 7% with quarterly

compounding?

C/Y

(compounding periods per year) is automatically set to

equal

P/Y

(payments per year), so you need to set

C/Y

Example: Monthly Deposits Compounded Quarterly

Procedure Keystrokes Display

Set all variables to defaults.

}

RST 0.00

Set compounding periods to 4.

[

P/Y=

C/Y=

12.00

4.00



Set beginning-of-period

payments.

]

BGN

Return to calculator mode.

0.00

Enter number of deposits

using payment multiplier.

N= 120.00



Enter interest rate.

I/Y= 7.00



Enter future value.

25000

FV= 25,000.00



Compute deposit amount.

PMT= -143.92



You need to make monthly deposits of $143.92.