How to use Financial Calculator

How to use Financial Calculator - percent per month for 48...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
How to use the Financial Calculator: 1. Type Desired Number, then Desired Symbol: n = # years or periods i/y = rate (not in decimal!) PV = Present Value (NEGATIVE! YOU USUALLY ARE INVESTING IT!) PMT = Payments (Sometimes 0) FV = Future Value 2. Press CPT (Compute), then the symbol you want to solve for. Examples: 1. You want to purchase a new car, and you are willing to pay $20,000. If you can invest at 10% per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car? i/y = 10 PV = -15000 FV = 20000 PMT = 0 Solve for n n = 3.02 2. After carefully going over your budget, you have determined you can afford to pay $632 per month towards a new sports car. You call up your local bank and find out that the going rate is 1
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: percent per month for 48 months. How much can you borrow? PMT = -632 i/y = 1 n = 48 FV = 0 Solve for PV PV = 23999.50 3. You want to have $1 million to use for retirement in 35 years. If you can earn 1% per month, how much do you need to deposit on a monthly basis if the first payment is made in one month? FV = -1000000 n = 35 * 12 = 420 i/y = 1 PV = 0 Solve for PMT PMT = 155.50 What if the first payment is made today? BGN Mode (2 nd , BGN, 2 nd , SET) FV = -1000000 n = 35 * 12 = 420 i/y = 1 PV = 0 Solve for PMT PMT = 153.96 To exit BGN Mode (2 nd , BGN, 2 nd , SET)...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern