Example: saving with monthly deposits – Texas Instruments Calculator User Manual
Page 39
Time-Value-of-Money and Amortization Worksheets
35
Answer:
Your monthly payment is $26.72.
Example: Saving With Monthly Deposits
Note: Accounts with payments made at the beginning of the period are
referred to as annuity due accounts. Interest begins accumulating earlier
and produces slightly higher yields.
You invest $200 at the beginning of each month in a retirement plan.
What will the account balance be at the end of 20 years, if the fund earns
an annual interest of 7.5 % compounded monthly, assuming beginning-
of-period payments?
Return to standard-calculator
mode
& U
0.00
Enter number of payments using
payment multiplier.
2
& Z ,
N=
24.00
Enter interest rate.
20
-
I/Y=
20.00
Enter loan amount.
525
.
PV=
525.00
Compute payment.
% /
PMT=
-26.72
To
Press
Display
Set all variables to defaults.
& } !
RST
0.00
Set payments per year to 12.
& [
12
!
P/Y=
12.00
Set beginning-of-period
payments.
& ] & V
BGN
Return to standard-calculator
mode.
& U
0.00
To
Press
Display