If $100 is invested at the end of every quarter at 8% compounded quarterly, how much will be in the account at the end of 20 years? How much interest will have been earned in that time span? What is the annual percentage yield of this investment?
TI-83 Set-up for future value:
N=80 I%=8 PV=0 PMT=-100 FV=? P/Y=4 Solve for FV.
If an account earns 4% compounded monthly, how much would need to be invested at the end of every month in order to have $1,000,000 at the end of 50 years? How much interest would be earned during that time span? What is the annual percentage yield of this investment?
TI-83 Set-up for periodic payment:
N=600 I%=4 PV=0 PMT=? FV=1000000 P/Y=12 Solve for PMT.