Example: computing present value in annuities, Cost savings for a present-value ordinary annuity – Texas Instruments Calculator User Manual
Page 33
Time-Value-of-Money and Amortization Worksheets
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Example: Computing Present Value in Annuities
The Furros Company purchased equipment providing an annual savings
of $20,000 over 10 years. Assuming an annual discount rate of 10%, what
is the present value of the savings using an ordinary annuity and an
annuity due?
Cost Savings for a Present-Value Ordinary Annuity
Cost Savings for a Present-Value Annuity Due in a Leasing
Agreement
To
Press
Display
Set all variables to defaults.
& } !
RST
0.00
Enter number of payments.
10
,
N=
10.00
Enter interest rate per
payment period.
10
-
I/Y=
10.00
Enter payment.
20000
S /
PMT=
-20,000.00