Texas Instruments BA II Plus User Manual

2: TVM and Amortization Worksheets 51
Saving for the Future by Making Monthly Deposits
Accounts with payments made at the beginning of the period
are referred to as “annuity due” accounts. Interest on annuity
due accounts starts accumulating earlier and produces slightly
higher yields.
An individual has decided to invest $200 at the beginning of
each month in a retirement plan. What will the account balance
be at the end of 20 years if the fund earns an annual interest of
7.5 % compounded monthly, assuming beginning-of-period
payments?
Future value(FV) = ?
Interest = 7.5%
Number of payments (N) = 240
. . .
Payment amount (PMT) = $200
Example: Regular Deposits (Annuity Due)
Procedure Keystrokes Display
Set all variables to defaults.
& } !
RST 0.00
Set beginning-of-period
payments.
& ]
& V
BGN
Return to calculator mode.
& U
0.00
Enter number of payments
using payment multiplier.
20
& Z ,
N= 240.00

Enter interest rate.
7.5
-
I/Y= 7.50

Enter amount of payment.
200
S /
PMT= -200.00

Compute future value.
% 0
FV= 111,438.31

Depositing $200 at the beginning of each month for 20 years
results in a future amount of $111,438.31.

Texas Instruments BA II Plus Specifications

General

Type	Financial
Cover	-
Form factor	Pocket
Control type	Buttons
Product color	Black
Digits	10 digits
Display tilting	No
Display number of lines	1 lines
Memory registers	10
Power source	Battery