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final value = principal value x (1+I)^n
I= interest rate for n say 10% it would be 0.10
if n= 1 year then interest rate if
one year interest rate so if 5 years n= 5
if interest rate is monthly then divide year int rate by 12
and increase n by 12 so 5 years equals 60 terms of interest calculation.
cost of equity would be pv + pv * CPI
if CPi was 2.5% as an example
cost of equity for year one= PV + (PV * 2.5/100)
fv = pv*(1+2.5/100)^1
if cpi is different each year then
fv= pv1(1+2.5/100)^1 + pv1(1+cpi2/100)^1 + pv1(1+cpi3/100)^1
If CPI is same for each year then FV = PV (1+0.025)^number of years.
^ 2 is like squared
First make sure all previous amounts stored are cleared by pressing 2nd F MODE.
Then type in the original value 20 000 and press PV.
Type in the interest 13 and press I/Y.
(If i assume that the interest is compounded yearly my calculation is more simple)
press 5 and N
Press COMP FV and your answer will be - 36 848.70
(If I assume that the interest is compounded monthly, i need to input a little bit more data into my calculator)
Press 2nd F I/Y (to get to payments per year) and press 12 and ENT. Press ON.
Then press 5 and 2nd F N and then press N again.
Now calculate FV by pressing COMP FV which should give you - 38 177.13.
Take this value and subtract the PV from it to get the amount of interest earned.
You should be careful with the symbols you are using. Roots are different. When you say `5 square root symbol 1.734` you are in fact doing the following: 5x square root(1.734) which is 6.5850. What you need to do is extract the fifth root of 1.734. The key to use to extract a root of index n (in your case 5) is to press the digit key for the index, then press [2nd][Y^x]. On the calculator near the [y^x] key you can see xRoot. This is the universal root key.