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Since this account has no regular payments (PMT = 0), the payment mode (End or Begin) is
irrelevant.
Table 6-8 Calculating the number of years
Keys
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Since the calculated value of N is between 5 and 6, it will take six years of annual
compounding to achieve a balance of at least 3,000. Calculate the actual balance at the end
of six years.
68
Time Value of Money Calculations
Figure 1 1 Cash flow diagram (Calculate the number of years)
Display
Description
0.00
Clears TVM memory.
1.00
Sets P/YR to 1 since interest is
compounded annually.
-2,000.00
Stores amount paid out for the
first deposit.
3,000.00
Stores the amount you wish to
accumulate.
7.20
Stores annual interest rate.
5.83
Calculates the number of years it
takes to reach 3,000.
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