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-12C keystrokes
- 1 3 g n
- 2 15 g i
- 3 200 PMT
- 4 50000 FV
- 5 PV = - 37,739.91
g is the blue shift key — press it immediately before n or i to enter the term in months rather than years.