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You want to start saving for the vacation home that you plan to buy when your...

You want to start saving for the vacation home that you plan to buy when your children finally leave the house. You estimate that you will need $200,000 in eighteen years. If you can earn 6% per annum, how much must be deposited at the beginning of each of the next eighteen years to fund your dream house?

What are keys to press on financial calculator?

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Answer #1

Money to be deposited at the beginning of each year = $6,013.52

Since deposits are made at the beginning of the period, it is a case of annuity due. So make sure you set the calculator to annuity due by pressing 2nd BGN 2nd SET 2nd QUIT

Keys to use in a financial calculator:

2nd BGN 2nd SET 2nd QUIT

FV 200,000

N 18

I/Y 6

CPT PMT

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