# Knowledge Base

## Solution 11277: Calculating Future Value on the BA Real Estate™.

### How is future value calculated on the BA Real Estate?

On the BA Real Estate, future value is calculated using the Time-Value-of-Money (TVM) model. The example below will demonstrate how to calculate future value.

Example: What would the Future Value of a savings account with $5,000 in it earning 5% interest compounded at the end of the year be after 20 years? • Press the [2nd] key and the [I%] key. • Input 1 and press the [=] key. (This will set the periods per year to 1.) The compounding period is automatically set to 1. • Press the [2nd] key and the [FV] key. (This will clear the TVM register.) • Input 5000, press the [+/-] key, and press the [LOAN] key. (This stores -5000 in the Present Value register.) • Input 5 and press the [I%] key. (This stores 5 in the Interest per Year register.) • Input 20 and press the [TERM] key. (This stores 20 in the number of payments register.) • Press the [CPT] key and the [FV] key. The Future Value is$13,266.49.