Solution 11199: Calculating Compound Interest on the BA-35 Solar.
How do I calculate compound interest on the BA-35 Solar?
To perform a compound interest calculation three of the four values (N, %i, PV, or FV) must be known. Please follow the steps below to find the unknown value:
• Press [2nd], [CMR] to clear the registers and use [MODE] to enter the financial mode (FIN appears on the display)
• Enter the three known values (N, %i, PV, or FV)
• Press [CPT] and the key for the unknown value
For compound interest calculations, the payment (PMT) must be zero. This value is set automatically when [MODE] is pressed to enter the financial mode or when the financial registers are cleared.
Example: A savings account has $5,000 in it. How much interest is earned on the account compounded at the end of the year if 13,266.49 will be in the account at the end of 20 years?
• Press [2nd], [CMR] to clear the TVM
• Press [2nd], [FIX], 2 to set the display to two decimal places
• Input 13266.49 and press [FV] to store 13266.49 in the future value register
• Input 5000 and press [PV] to store 5000 in the present value register
• Input 20 and press [N] to store 20 in the number of payments register
• Press [CPT], [%i]
The interest earned on the savings account is 5%.Please see the BA-35 Solar guidebook for additional information.