Future Value (FV) of an annuity due using TI BAII Plus

[@tamaraoswald4336]

Extremely helpful and easy to follow outlining each step. Thank you.

[@nadianafarfinanceclassroom5662]

You are welcome!

[@khethomndzebele5695]

my calculator gives me 81511.29.. Where did I go wrong?

[@abdulazizaldukhiel1613]

thank you so much that was extremely helpful

[@martinsinclair55]

Thanks. Can you tell me how to calculate a -ln of any number on this calculator as opposed to a +ln?

[@nadianafarfinanceclassroom5662]

Do you refer to the natural log (ln)?

[@martinsinclair55]

@@nadianafarfinanceclassroom5662 Yes but just figured it out. Thanks

[@nadianafarfinanceclassroom5662]

@@martinsinclair55 Great! Best of luck!

[@femi7815]

why am I getting 101,270?

[@Liban.M]

you forget to add 0 for PV

[@rob8482]

Good job sweetie!

[@acs1630]

Either CFA is wrong or this video is wrong. go figure... CFA guide has this practice question in (question #2) in Time value of Money: "A couple plans to set aside $20,000 per year in a conservative portfolio projected to earn 7 percent a year. If they make their first savings contribution one year from now, how much will they have at the end of 20 years?" Clearly payments starts at t=1 in CFA question, The value of N here is 20. In the above video payment starts at t =0 and so N should be 5. If I am wrong can anyone explain why both questions are essentially same? I think they are different If not, the correct answer is : $119,694.21

[@Sam-iu1pk]

I know it's a year late, but you're wrong. The answer 99,694.21. N=4 I/Y=9 PMT=20,000. You have set your calculator for the BEG of the period not the end. N=4 because it's an ANNUITY DUE, not Ordinary Annuity. So at the end of 4 years only 4 payments would have been made.

[@sauravchakravarty6323]

I think the problem is for an ordinary annuity.

[@nadianafarfinanceclassroom5662]

The first payment is made today instead of at the end of the year. This is your clue that this is an annuity due.

[@acs1630]

The correct answer is 119,694.21