Question

Derek will deposit $1,900.00 per year for 16.00 years into an account that earns 5.00%. The first deposit is made today. How much will be in the account 16.0 years from today? Note that he makes 16.0 total deposits.

The answer is 47,196.70, can someone show me how to get to this answer using the financial calculator key stroke?? Thank you

this was how i try to do it because i was taught this way, i know i did it wrong somewhere but dont know where nor how to fix it

N=16

I/Y=5

PV=0

PMT= -1,900

FV=??? 44,949.23436

then

N=unsure

I/Y=5

PV= -44,949.23436

PMT=0

FV=???

Answer 1

Information provided:

Annual deposit= $1,900

Time= 16 years

Interest rate= 5%

Since the first deposit is made today, the question pertains to computing the future value of annuity due.

This can be solved using a financial calculator by inputting the below into the calculator:

The financial calculator is set in the end mode. Annuity due is calculated by setting the calculator to the beginning mode (BGN). To do this, press 2^nd BGN 2^nd SET on the Texas BA II Plus calculator.

The future value of annuity due is computed by entering the below in a financial calculator in BGN mode:

PMT= 1,900

N= 16

I/Y= 5

Press the CPT key and FV to compute the future value of annuity due.

The value obtained is 47,196.6961.

Therefore, $47,196.70 will be in the account 16 years from today.

In case of any query, kindly comment on the solution