![]() In this problem, the $100 was an investment (i.e., a cash outflow) and the future value of $161.05 would be a cash inflow in five years. Cash inflows are entered as positive numbers and cash outflows are entered as negative numbers. This is simply a way of keeping the direction of the cash flow straight. Most financial calculators (and spreadsheets) follow the Cash Flow Sign Convention. Notice that we entered the 100 in the PV key as a negative number.Had you entered 0.10, the future value would have come out to 100.501 - obviously incorrect. This is because the calculator automatically divides any number entered into I/YR by 100. When we entered the interest rate, we input 10 rather than 0.10.The order in which the numbers are entered does not matter.To solve these problems you simply enter the variables that you know in the appropriate keys and then press the other key to get the answer. In this case, we have a 4-variable problem and were given 3 of them (N, i, and PV) and had to solve for the 4th (FV). ![]() Of these, you will always be given 3 or 4 and asked to solve for the other.
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