Compounding one investment
This will calculate: how much will your property be worth in so many years?
Example: if you buy a property today for $125,000 (or you already own it and it is worth $125,000 today), what will the value be in 6 years if it appreciates at 12% per year?
The first sequence uses annual compounding. The second uses monthly compounding, which is why the answer is higher.
Prefer to let the site do the arithmetic? Use the compound one investment form.
- HP-12C keystrokes
- Annual compounding
- 1 6 n
- 2 12 i
- 3 125000 CHS PV
- 4 FV = 246,727.84
- Monthly compounding
- 5 6 g n
- 6 12 g i
- 7 125000 CHS PV
- 8 FV = 255,887.41
CHS changes the number to a negative. On the HP-12C every cash outlay is entered as a negative, which is why the answer comes back positive — it is money you receive. g is the blue shift key — press it immediately before n or i to enter the term in months rather than years.