02-05-2019 07:13 PM - last edited on 02-05-2019 07:19 PM by rick-s
A Corporate Finance text wants us to calculate FV per the following data:
PV=-100, I/Y=10, N=5
Answer should be 161.05 but I get 104.24. I already "cleared" the calculator. What am I doing wrong? All problems on the text give different results. Please help!
02-06-2019 06:10 AM
Your wrong answer is caused by your payments-per-year being set to 12. Therefore you are calculating 60 payments over 5 years, instead of just 5 payments, which is what you want. So just press 1 [P/YR] and recalculate the FV, and you'll get the answer you're expecting. (N.B. Be sure to use the [P/YR] key, not the [*P/YR] key.)
One way to check the current payments-per-year setting without clearing or changing anything is by pressing [RCL] [P/YR].
Hope that helps! Disclaimer: I don't work for HP; I just enjoy using their calculators.