




PV = ?
FV
20
= 5,000
With a financial calculator enter the following:
N = 20, I/YR = 7, PMT = 0, and FV =
5000.
Solve for PV = $1,292.10.
53
0
18


PV = 250,000
FV
18
= 1,000,000
With a financial calculator enter the following:
N = 18, PV = 250000, PMT = 0, and FV =
1000000.
Solve for I/YR = 8.01% ≈ 8%.
54
0
N = ?


PV = 1
FV
N
= 2
$2 = $1(1.065)
N
.
With a financial calculator enter the following:
I/YR = 6.5, PV = 1, PMT = 0, and FV = 2.
Solve for N = 11.01 ≈ 11 years.
55
0
1
2
N – 2
N – 1
N



•
•
•



PV = 42,180.535,000
5,000
5,000
5,000
FV = 250,000
Using your financial calculator, enter the following data:
I/YR = 12; PV = 42180.53;
PMT = 5000; FV = 250000; N = ?
Solve for N = 11.
It will take 11 years to accumulate
$250,000.
56
Ordinary annuity:
0
1
2
3
4
5






300
300
300
300
300
FVA
5
= ?
With a financial calculator enter the following: N = 5, I/YR = 7, PV = 0, and PMT = 300. Solve for
FV = $1,725.22.
6.5%
7%
12%
I/YR = ?