Income Property Appraisal Basics – Financial Functions

SIX FUNCTIONS OF $1 FACTORS USING A FINANCIAL CALCULATOR

(HP-12C Keystroke, but applicable to most calculators)

I = Interest rate Frequency/Time/Periods = N

FV = Future Value PV = Present Value PMT = Payment

Examples: 9% Interest: 10 Periods

Clear Financial register: f FIN Read Display

Growth of $1

10 N 9 I 1 PV FV 2.3674

Growth of $1 per period

10 N 9 I 1 PMT FV 15.1929

Sinking Fund Factor

10 N 9 I 1 FV PMT .0658

Present Worth of $1

10 N 9 I 1 FV PV .4224

Present Worth of $1 per period

10 N 9 I 1 PMT PV 6.4177

(for payments in advance, g BEG; to eliminate, g END)

Partial Payment Factor

10 N 9 I 1 PV PMT .1558

Monthly Payments

10 gN 9 gI 1 PV PMT .0127

Annual Constant, monthly payments 12 x .1520