## Time Value of Money

Self-Paced Overview

### Using a Financial Calculator

#### Example 3:

What would you have to deposit today to have $50,000 in eight years if you can earn 6% interest, compounded semiannually?

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 present value of $50,000?

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: $31,158.35