FV of annuity due and single CF question correct, interest, beginning, question, annuity

whew1110

If u deposit 1.000usd in the bank today and at the beginning of each of the next three years, how much will u have six years from today at 6% interest?
Answer by using BA II PLus:
2nd reset enter
2nd beg 2nd set
2nd quit
4N
6 I/Y
1000 +/ PMT
Cpt fv
Sto 1
2nd beg 2nd clr work
2nd quit
2N
6 I/Y
Rcl 1 +/ pv
Cpt fv
Result of computation is 7,270.24 but correct answer it should be 5,210.23
Could you pls check it out my mistaken in calculating pls! Thanks a lot for your kindly help.

Zesty

Here’s a trick that sometimes helps when calculating FVs for “two part” problems:
The “FV of the PV of the cash flows” equals the “FV of the cash flows”. In other words, calculate the PV of the annuity. Then calculate the FV of the PV.
Here’s the application: The PV of the four payments, whether calculated in Begin mode straight away (i.e. as an annuity due) or in end mode (as an ordinary annuity) and then adjusted by (1+i) is $3,673.01
The FV of $3,673.01 for 6 years at 6% annual interest is $5,210.23
While this doesn’t save much time in this case, the “calculate PV and then calculate FV of PV” cam be useful if you have irregular cash flows  the cash flow register of the BA2+ can be used in conjunction with the NPV function to get PVs of irregular cash flows easily. But it won’t (unless you have a newer model) calculate FV of irregular cash flows.

NakedPuts00

2nd reset enter
2nd beg 2nd set
2nd quit
4N
6 I/Y
1000 / PMT
Cpt fv: 4637.09
Sto 1
2nd beg 2nd clr work
2nd quit
2N
6 I/Y
pmt=0
n=2
4637.09: pv
f.v=5210.23
Cpt fv

cyber21

on your 2nd step – before you start out
2nd beg enter
2nd clr work 2nd quit 2N
6 I/Y
Rcl 1 +/ pv
Cpt fv
Problem was the 1000$ Annuity was being considered again on the 2nd calculation as well.
CP