Unformatted text preview: $0.18—
will frequently exist between the values found by these alternative methods.
Clearly, the improved accuracy and ease of calculation tend to favor the use of
the calculator. (Note: In future examples of calculator use, we will use only a display similar to that shown at the left. If you need a reminder of the procedures
involved, go back and review the preceding paragraph.)
Spreadsheet Use The future value of the single amount also can be calculated as
shown on the following Excel spreadsheet. 4. Many calculators allow the user to set the number of payments per year. Most of these calculators are preset for
monthly payments—12 payments per year. Because we work primarily with annual payments—one payment per
year—it is important to be sure that your calculator is set for one payment per year. And although most calculators
are preset to recognize that all payments occur at the end of the period, it is important to make sure that your calculator is correctly set on the END mode. Consult the reference gui...
View Full Document