## Time Value of Money

Self-Paced Overview

### Using a Financial Calculator

#### Example 1:

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.

Answer: $22,289.21