Financial Calculations Worksheet Page 14
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3019 - 3
Compound Interest Calculations
u u u u u Number of installments
Example
Calculate the number of monthly $84 installments required to
accumulate a total of $6,000 at an annual interest rate of 6%,
compounded annually.
In the set up screen, specify “End” for Payment and then press J.
P.7
Perform the following key operations from the input screen.
c
gw
aw(
PV
= 0)
-iew(
PMT
= –84)
gaaaw(
FV
= 6,000)
bcw(Monthly installments)
bw(Annual compounding)
1(
n
)
u u u u u Interest rate
Example
Calculate the annual interest rate required to accumulate a
total of $10,000 in 10 years with $60 monthly installments.
In the set up screen, specify “End” for Payment and then press J.
P.7
Perform the following key operations from the input screen.
= 10 × 12.)
ba*bcw(Input
n
c
aw(
PV
= 0)
-gaw(
PMT
= –60)
baaaaw(
FV
= 10,000)
bcw(Monthly installments)
bw(Annual compounding)
2(
I
%)
u u u u u Principal plus interest with initial deposit
Example
Calculate the principal plus interest after one year for an
installment savings account with an interest rate of 4.5%,
compounded monthly, opened with an initial deposit of $1,000,
with $500 installments added each month.
In the set up screen, specify “End” for Payment and then press J.
P.7
334
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