Identifying a "Mystery" Financial Calculator
Clear your calculator's financial registers. (If your calculator uses a
periods/year variable, clearing should reset that variable to 12.)
Enter the following values, all as positive numbers.
| N = 10 | I = 1 | PMT = 50 | PV = 1000 | FV = ??? |
Now compute the future value.
| Your answer for FV: | Rate | Positive Payment | Future Balance | Convention |
| 506.49 | Annual | Decreasing Annuity | Balance | Loan |
| -506.49 | Annual | Decreasing Annuity | Withdrawal |
|
| 581.51 | Periodic | Decreasing Annuity | Balance | Loan |
| -581.51 | Periodic | Decreasing Annuity | Withdrawal |
|
| 1510.24 | Annual | Increasing Annuity | Balance | Basic |
| -1510.24 | Annual | Increasing Annuity | Withdrawal | Standard |
| 1627.73 | Periodic | Increasing Annuity | Balance | Basic |
| -1627.73 | Periodic | Increasing Annuity | Withdrawal | Standard |
- Basic convention calculators represent payments which
increase the balance of an account as positive payments, and future
values are given as balances in that account.
- Standard convention calculators represent payments
which increase the balance of an account as positive payments, and
future values are treated as amounts which can be withdrawn from the
account.
- Loan convention calculators represent payments which
decrease the balance of an account as positive payments (making loan
computations easier), and future values are given as balances in that
account.