How to use Financial Calculator

How to use Financial Calculator - How to use the Financial...

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

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

  • '
  • NoProfessor
  • Payment, Credit card, Economics terminology, sports car

{[ 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