Solution 11204: Calculating Present Value on the BA-35 Solar.
How do I calculate present value on the BA-35 Solar?
The example below will demonstrate how to calculate Present Value on the BA-35 Solar.
Example: John Doe wants a savings account with $13,266.49 in it. He will earn 5% interest on his account compounded at the end of the year.
What is the present value of the account at the beginning of the 20 years?
Solution Steps:
• Press the [2nd] key then the[CE/C] key (This will clear the Time-Value-of-Money registers.)
• Press [2nd] [FIX] 2 (This will set the display to two decimal places.)
• Input 13266.49 and press the [FV] key (This stores 13266.49 in the future value register.)
• Input 5 and press the [%i] key (This stores 5 in the interest per year register.)
• Input 20 and press the [N] key (This stores 20 in the number of payments register.)
• Press the [CPT] key and the [PV] key
The present value of John Does savings account is $5,000.
Please see the BA-35 Solar Quick Reference Guide for additional information.