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.
Please see the BA Real Estate guidebook for additional information.