Question

Derek will deposit $2,297.00 per year for 16.00 years into an account that earns 15.00%. The first deposit is made today. How much will be in the account 16.0 years from today? Note that he makes 16.0 total deposits.

Derek will deposit $1,588.00 per year into an account starting today and ending in year 15.00. The account that earns 15.00%. How much will be in the account 15.0 years from today?

Derek will deposit $6,609.00 per year for 26.00 years into an account that earns 4.00%, The first deposit is made next year. How much will be in the account 37.00 years from today?

Derek will deposit $9,940.00 per year for 22.00 years into an account that earns 5.00%, The first deposit is made next year. He has $13,148.00 in his account today. How much will be in the account 35.00 years from today?

I really need help with what to put into the financial calculator. I've been trying find it for several hours but can't find the process on finding the answer. I would really appreciate it :) Thank You~

Answer 1

1]

N = 16

I/Y = 15

PMT = 2297

2nd --> PMT --> 2nd --> Enter (This will change the calculation to "BGN", or "begin" mode

CPT --> FV = $147,180.49

2]

N = 15

I/Y = 15

PMT = 1588

2nd --> PMT --> 2nd --> Enter (This will change the calculation to "BGN", or "begin" mode

CPT --> FV = $86,891.35

3]

N = 26

I/Y = 4

PMT = 6609

CPT --> FV = $292,856.32

Next, we do this :

PV = -292856.32

N = 11 (there are 11 years from 26 years to 37 years from now)

I/Y = 4  

CPT --> FV = $450,838.85

4]

N = 22

I/Y = 5

PMT = -9940

PV = -13148

CPT --> FV = $421,203.16

Next, we do this :

PV = -421203.16

N = 13 (there are 13 years from 22 years to 35 years from now)

I/Y = 5  

CPT --> FV = $794,241.38