Discounting a series
This will calculate: if an investment pays in equal periodic installments, how much to pay for it today to earn a desired return.
Example: I would like to borrow money from you today and pay you back in equal monthly installments of $450 for 3 years. How much will you loan me if you want a 12% rate of return?
Please note: the result is a negative number because it is a cash outlay.
Prefer to let the site do the arithmetic? Use the discounting a series form.
- HP-10B keystrokes
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1
12
P/YR
Sets twelve periods per year
- 2 3 N
- 3 12 I/YR
- 4 450 PMT
- 5 PV = -13,548.38
P/YR tells the calculator how many payments there are in a year. Set it first: 12 for monthly, 1 for annual. It stays set until you change it. The plain gold key is the shift key. Press it immediately before another key to reach the gold function printed above that key.