How much to Deposit for $20,000 in 10 Years with 9% Interest?

Calculate the Present Value

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Question

How much must you deposit today if you wish to have $20,000 in 10 years, assuming that interest accumulates at 9% per year, compounded annually?

Answers

Explanations

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Explanation

On the BAII Plus, press 10 N, 9 I/Y, 0 PMT, 20000 FV, CPT PV. On the HP12C, press 10 n, 9 i, 0 PMT, 20000 FV, PV. Note that the answer is displayed as a negative number. Make sure that the BAII Plus has the P/Y value set to 1.