Calculated Industries 3420 User Guide - Manual (Page 42)

U SER ’ S G UIDE — 41
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/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 ÷ .
Note: This calculator will not handle savings/investment problems involving cash flows
or selecting between beg/end periods, only simple future value problems where there
is an initial deposit, as shown above.
3420UG-E-A 7/2/04 9:06 AM Page 41