Solution 11279: Calculating Present Value on the BA Real Estate™.
How would I calculate present value on the BA Real Estate?
The following example demonstrates how to calculate present value on the BA Real Estate.
Example: How much money must be deposited into a savings account paying 0.5% compounded at the end of each year to have $10,000 in 20 years?
1. Press [2ND] [BGN/END] until the BGN indicator disappears.
2. Clear TVM values ¾ Press [2ND] [CLR TVM].
3. Set both P/Y (payments per year) and C/Y (compounds per year) to 1 ¾ Press [2ND] [P/Y] [1] [=] [=].
4. Enter number of payments ¾ Input 20, then press [TERM].
5. Enter interest rate ¾ Input .5, then press [I%].
6. Enter final balance ¾ Input 10000, then press [FV].
7. Compute present value ¾ Press [CPT] [LOAN].
Answer: $9,050.63 must be deposited.
For additional instructions on performing TVM calculations on the BA Real Estate, refer to the online guidebook for the calculator.