Education Savings (Annuity Due)

Exercise ID: tvm-real-007

Exam TrapsAnnuity Due

Description

A parent plans to invest $3,000 at the beginning of each year for 18 years. If the account earns 6% annually, what is the accumulated value?

Given Values

I/Y

PMT

-3000

Objective

Calculate FV

Steps

Total 16 steps

Step 1:Open BGN/END mode settings

Key Sequence:

2ndPMT

Before Key Press:

0.00

After Key Press:

END

⏱ 1000ms

Step 2:Change to BGN mode

Key Sequence:

2ndENTER

Before Key Press:

END

After Key Press:

BGN

⏱ 1000ms

Step 3:Return to calculator mode

Key Sequence:

2ndCPT

Before Key Press:

BGN

After Key Press:

0.00

⏱ 1000ms

Step 4:Clear TVM Registers

💡 Always clear TVM before starting a new problem.

Key Sequence:

2ndFV

Before Key Press:

0.00

After Key Press:

0.00

⏱ 1500ms

Step 5:Input N = 18

Key Sequence:

Before Key Press:

0.00

After Key Press:

⏱ 1400ms

Step 6:Store in N

Key Sequence:

Before Key Press:

After Key Press:

N=18.00

⏱ 1000ms

Step 7:Input I/Y = 6

Key Sequence:

Before Key Press:

N=18.00

After Key Press:

⏱ 1200ms

Step 8:Store in I/Y

Key Sequence:

I/Y

Before Key Press:

After Key Press:

I/Y=6.00

⏱ 1000ms

Step 9:Input PV = 0

Key Sequence:

Before Key Press:

I/Y=6.00

After Key Press:

Key Sequence:

2ndCPT

Before Key Press:

END

After Key Press:

0.00

⏱ 1000ms

Calculator Display

      0.00

Speed:← →

💡 Press Space to quickly pause/play

⚠️ Common Mistakes and Traps

1.Forgetting to set calculator to BGN mode
2.Forgetting to switch back to END mode after calculation
3.Using N=19 or N=17 incorrectly

(Expand the sections to view answers and common mistakes before printing.)

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