Solution 18189: Finding the Future Value of a Lump Sum on the BA Real Estate™.
How do I find the future value of a lump sum on the BA Real Estate?
Please see the below instructions on finding the future value of a lump sum on the BA Real Estate.
When an accountant moved into the real estate business, he took a $70,000 lump-sum distribution from his retirement program. He now wants to roll it over into an IRA that yields 8% compounded monthly. What will the account's value be in 20 years when he reaches age 70?
• Clear the TVM values by pressing [2nd][CLR TVM].
• Set the C/Y and P/Y to 12 by pressing [2nd][P/Y] then enter the number 12.
• Press the [=] key twice.
• Enter 20 and press [TERM].
• Enter 8 and press [I%].
• Enter 70 and press [+/-][LOAN].
• Press [CPT][FV] to compute the future value.
The future value is $344,876.19.
Please see the BA Real Estate guidebook for additional information.