Question

What values do I enter for N, PMT, i/y, FV and PV on a finance calculator to solve for the question below.
Suppose you need to have $50,113.00 in an account 22.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 12.00 years from today?

Answer 1

To solve this problem using a finance calculator, you need to determine how much you need to deposit 12 years from today to have $50,113.00 in an account 22 years from today, given that the account pays an interest rate of 11.00%.

### Steps to Solve the Problem:

1. **Identify time periods**:
- Total time until the goal is reached = 22 years.
- Time from now until the deposit is made = 12 years.
- Therefore, the time from the deposit until the goal is reached = \(22 - 12 = 10\) years.

2. **Values to Input:**
- **N (Number of periods)**: 10 (the time from the deposit until the goal is reached)
- **i/y (Interest rate per period)**: 11% (the interest rate of the account)
- **FV (Future Value)**: $50,113.00 (the amount you want in the future)
- **PMT (Payment per period)**: 0 (since there are no additional payments made)
- **PV (Present Value)**: This is what we want to solve for (the amount to deposit).

### Summary of Values to Enter:

- N = 10
- PMT = 0
- i/y = 11
- FV = 50,113
- PV = ? (This is the value we'll calculate)

### Calculation:

Using these inputs, you can then proceed to find the Present Value (PV) on your financial calculator.

### Steps to Calculate:

1. Enter N = 10.
2. Enter PMT = 0.
3. Enter i/y = 11.
4. Enter FV = 50,113.
5. Compute PV.

This will give you the amount you need to deposit into the account 12 years from today.