## 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which increase the balance of an account as positive payments, and future values are treated as amounts which can be withdrawn from the account.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.