Hello, my calculator keeps on giving me different answers. Already cleared memory (2nd, clr work). Can anyone check for me what you get for this equation using method 2 below?
Q: you have 1,000,000, annual rate of 3%, compounding daily. What do you get after 4 years?
Method 1: 1,000,000 x(1+0.03/365)^365x4 = 1,127,491 correct
Method 2: it’s where I get different and the wrong answer (1,123,889)
Pv = 1000,000
i/y=3/365=0.008
N= 4x365 = 1460
cpt , FV = 1,123,889
I’ve just checked.
N = 4 * 365 = 1460 I/Y = 3 / 365 = 0.0082 PV = -1,000,000 PMT = 0 CPT --> FV = 1,127,491.292
Seems something is wrong with your calculator. Try resetting it.
there’s hidden gem in the above reply. Find it and the discoverers of zero shall have a sound sleep tonight… your calculator’s A - Okay
the little things.
Hi,
I believe your calculator is working fine. It is just the long number after the decimal point.
try putting I/Y: 0.008219178 instead of 0.008 it will give you the correct answer.
The best practice to avoid these issues is to put the long decimal number stored on your calculator and recall that number when needed.
I hope that helped.
The way to avoid this is to not round. Use the following keystrokes
0.03 / 365 =
then press the II/Y key - this stores the answer in the appropriate TVM register. Whenever possible, avoid writing down intermediate answers - get used to storing the answer directly in the appropriate register (at least, when using the TVM or Cash Flow Register worksheets).
Thanks for your check!
Yes, I realised this. Thanks!