Posted by John Behle on August 07, 2007 at 23:05:40:
You’re welcome, Have a great day.
Need some basic math help… - Posted by Prodigy
Posted by Prodigy on August 07, 2007 at 05:58:28:
I have a Real Estate Master IIIx and am trying to solve the following 2 problems:
What is the balance in a savings account at the end of a ten-year period with regular quarterly deposits of $250 made at the beginning of each period at 9% compounded quarterly?
What is the present worth of $15,000 to be received in ten years from today at a discount rate of 9 percent compounded annually?
*** For problem #2, I ran some #'s and got 2 different answers. Here’s what I did.
[15,000] [shift] [Loan Amt/FV]
[9] [Int]
[10] [Term]
I then pressed the [Loan Amt] key to get the answer for PV:
$6,159.69
I did the same thing again, but this time I used [120] for [Term] instead of [10] My answer was:
$1,038.71
For some reason, I believe both of my answers are incorrect.
How do I solve these problems using my calculator?
Thanks all…
Re: Need some basic math help… - Posted by John Behle
Posted by John Behle on August 07, 2007 at 21:49:15:
For the first question I get the answer of $15,946.54. I have no idea about the steps on a Real Estate Master. I have never owned one and only seen one a few times. I worked the problem on my HP12C since it was handy. With the 12C, I put in 40 as the N, 250 as the PMT, -0- as the PV and 9/4 or 2.25 as the I.
I did this because we are dealing with a periodic rate and a periodic cash flow where it is payable or compounded 4 times a year. So, the term of ten years is multiplied by 4 and the rate of 9% is divided by 4.
For the second question, the answer I get is $6336.16. Again, this is a periodic scenario, though the period is yearly. So, I entered $15,000 as the FV, 9 as the I, 10 as the N and -0- as the payment.
Re: Need some basic math help… - Posted by Tom Henderson
Posted by Tom Henderson on August 12, 2007 at 15:25:09:
Hello John,
I was in the John Berven class with you in Salt Lake City, and traded that course to you for one of yours. Glad to see you are healthy again.
I came up with a different answer than you on the first problem. We differed in I put my calculator in the BEGIN MODE, because the $250 was being deposited at the start of the quarter not the end. I came up with $16,305.34, using my handy dandy, portable dash board HP 19B.
Maybe I did not understand the problem.
Tom Henderson
H&P Capital Investments LLC
www.hpnotes.com
Re: Need some basic math help… - Posted by Prodigy
Posted by Prodigy on August 07, 2007 at 22:29:00:
Thanks a ton John for answering… Much appreciated…