Time Value of Money
Using a Financial Calculator
How much will $15,000 be worth in five years if interest is 8% compounded quarterly?
Using an HP 10bII+
Read the problem thoroughly.
Remember cash outflows carry a minus sign.
Make sure what is being asked in the problem.
What is the future value of the $15,000?
Clear the calculator.
Input the known value.
Input the number of compounding periods per year.
Input the annual interest rate.
Input the total number of compounding periods.
Request the unknown.