TVM problem with calculator

When it should be: N = 2; I/Y = 10; PV = –200; CPT → FV = $242 my calculator shows FV=231,5

Whats is wrong?

Is PMT set to zero?

Have you also checked P/Y and C/Y? They should both be 1.

PMT=5 gives FV = 231.5. :bulb: :+1:

Try to get into the habit of clearing the TVM on your calculator before starting a new problem; [2ND] --> [FV]. Do it consciously a few times and eventually it will basically just be muscle memory for you. The discipline of entering all variables when tackling each new TVM problem should hopefully help you avoid any input errors like this going forward.

Try to do the same thing with the CF functionality as well, using the CLR WORK input each time you’re tackling a new problem.

Best of luck!

Hi breadmaker,

Where do I set p/y and c/y. What are they?

José

Hi studyguy,

I was clearing tvm but still c/y didn’t get reset. I’m checking that, but feels like killer.

José

Payments per year and compounding periods per year. You will find them by pressing 2nd I/Y. Whatever you enter for P/Y will be the default for C/Y, unless you enter something else .

Remember: your calculator is the only friend you can bring with you into the exam!!!