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Compound Interest with CMPD
Compound Interest with CMPD
The enhanced display screen and apparent interactivity of the FC 100V/200V
actually makes calculation such as compound interest calculation much easier. In
our discussion we calculate partial month using compound interest, and we use
j (compounded m times a year) to represent the nominal interest rates.
m
Example 1 ►>>
Operation
Enter CMPD mode by tapping on
let it be. Otherwise, scroll down and set it to 'CI'.
EXE
So we have set partial month calculation as [dn:CI]. █
Example 2 ►>>
compounded semi-annually, or
In CMPD mode, n is the number of compound periods, P/Y is the number of annual payment, while
C/Y is the number of annual compounding. Check page E-45 of the User Guide.
Operation
As interest is compounded twice a year, the number of compound periods is n = 2x2
= 4. Also, interest is paid twice a year, so we have P/Y = 2. Lastly, C/Y is the
number of annual compounding, so C/Y is 2.
Enter CMPD mode and make sure the calculator displays [Set:End]. Scroll down,
enter 2 for [n], 12 for [ I% ], (-)1000 for [PV], 0 for [PMT], 1 for [P/Y] and 2 for [C/Y].
CMPD
(─)
1
EXE
Scroll up to select [FV] and solve it.
SOLVE
So the future value (sum of principal and accumulated interest) is approximately
$1262.48. Obviously the compound interest is $1262.48 - $1000 = $262.48. █
QED Education Scientific
Enter CMPD mode and set partial month calculation to CI.
CMPD
1
Find the compound interest on $1,000 for 2 years at 12%
12
%
j
=
2
4
EXE
1
0
0
0
2
EXE
2
SETUP
, then tap on
.
2
EXE
EXE
0
EXE
. If [dn:CI] is displayed,
Screenshot from Casio TVM
Output: FV = 1262.47696
1