Calculated Industries 3442 - Manual (Page 53)

48 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P X2
Future Value
Given any four components to a problem that includes a future
value, you can calculate the fifth.
Appreciation
You purchased a home for $350,000 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 pmt/yr 1 s ÷ 1.00
Enter present value 3 5 0 ) l 350,000.00
Enter term in years 3 T 3.00
Enter appreciation rate 6 ˆ 6.00
Find future value s l “run” 416,855.60
Return to 12 pmts/yr 1 2 s ÷ 12.00
Basic Savings Account Problem (Future Value of an Initial
Deposit or Lump Sum)
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 Amt (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 17,424.25
*Calculator must be set to default of 12 periods per year, for compounding monthly. If
it isn’t, enter
1 2 s ÷ .
Investment Future Value
The new investment future value function works the same as the
future value function, except that the interest is compounded at the
beginning of the period rather than the end. This is typical of most
annuities.