Discounting a series with balloon
This will calculate: if you know what a future sum will be and you also receive periodic payments along the way, how much to pay for it today to earn a desired return.
Example: I would like to borrow money from you today. I can pay you $200 per month and then $50,000 in 3 years from the sale of some stocks. How much will you loan me if you want a 15% 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 with balloon form.
- HP-10B keystrokes
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1
12
P/YR
Sets twelve periods per year
- 2 3 N
- 3 15 I/YR
- 4 200 PMT
- 5 50000 FV
- 6 PV = - 37,739.91
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.