48 — MORTGAGE QUALIFIER PLUS ®P X2Future ValueGiven any four components to a problem that includes a futurevalue, you can calculate the fifth.AppreciationYou purchased a home for $350,000 and want to know what it willbe worth in 3 years, figuring an inflation or appreciation rate of 6%.(Set periods to one per year.)STEPS KEYSTROKES DISPLAYClear calculator o o 0.00Set to 1 pmt/yr 1 s ÷ 1.00Enter present value 3 5 0 ) l 350,000.00Enter term in years 3 T 3.00Enter appreciation rate 6 ˆ 6.00Find future value s l “run” 416,855.60Return to 12 pmts/yr 1 2 s ÷ 12.00Basic Savings Account Problem (Future Value of an InitialDeposit or Lump Sum)What is the future value of an initial deposit of $15,000 after 5 years,if interest is compounded monthly and the interest rate is 3%?STEPS KEYSTROKES DISPLAYClear calculator o o 0.00Recall payments/year* ® ÷ 12.00Enter savings deposit intoLoan Amt (present value) 1 5 ) l 15,000.00Enter interest rate 3 ˆ 3.00Enter term in years 5 T 5.00Find future value s l 17,424.25*Calculator must be set to default of 12 periods per year, for compounding monthly. Ifit isn’t, enter 1 2 s ÷.Investment Future ValueThe new investment future value function works the same as thefuture value function, except that the interest is compounded at thebeginning of the period rather than the end. This is typical of mostannuities.
