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Future Value
Given any four components to a problem that includes a future
value, you can calculate the fifth.
Appreciation / Future Value
You purchased a home for $210,000 and want to know what it will
be worth in 3 years, figuring an inflation or appreciation rate of 6%.
(Set periods to one per year.)
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Set to 1 payment per year
1 s ÷
1.00
Enter present value
2 1 0 ) l
210,000.00
Enter term in years
3 T
3.00
Enter appreciation rate
6 ˆ
6.00
Find future value
s l
“run” 250,750.98
Return to 12 Payments/year
1 2 s ÷
12.00
Basic Savings Account Problem
(Future Value of an Initial Deposit)
What is the future value of an initial deposit of $15,000 after 5 years,
if interest is compounded monthly and the interest rate is 3%?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Recall Payments/year*
® ÷
12.00
Enter savings deposit into Loan
Amount (Present Value)
1 5 ) l
15,000.00
Enter Interest rate
3 ˆ
3.00
Enter Term in years
5 T
5.00
Find Future Value
s l
17,408.11
*Calculator must be set to default of 12 periods per year, for compounding monthly. If
it isn’t, enter
1 2 s ÷
.
