Texas Instruments Avigo, User Manual

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Financial Calculator User’s Guide 11
Computing Retirement Withdrawal
Chris has just retired at age 66. Based on family history, Chris expects to live until
age 93. Chris has $1.3 million in the bank earring 5.5% interest. In order to leave no
money in the bank, how much should Chris withdraw from the bank per month?
Procedure Keystrokes Display
Move to the third screen.
ñ
Third screen
Select Annual Percentage
Rate. Tap on
Œ
or accept
the default.
APR is selected
Select 12 payments per
year. Tap on 12 or accept the
default of 12. Payments/year: 12
Select 12 compoundings
per year. Tap on the Compounds/
year input box and tap on
12,
ö
or accept the default
of 12.
Compounds/year: 12
Select payments to be
made at the End. Tap on
Š
or accept
the default.
Payments made at: End
Select two decimal places. Tap on 2 or accept the
default of 2 .
Decimal place: 2
Return to the first screen. Tap on
Ñ
twice. First screen
Enter a future value of
zero. Tap on the
…
input
box and tap on 0,
ö
.
… 0.00
Leave
„
set to zero. „ 0.00
Enter the present value of
$1,300,000.00. Tap on the
†
input box
and tap on 1300000,
ö
.
† 1,300,000.00
Enter the 5.5% interest rate
per year. Tap on the
‡
input
box and tap on 5.5,
ö
.
‡ 5.5
Enter the total number of
payments required.
((93-66)*12). Tap on the
ˆ
input
box and tap on 324,
ö
.
ˆ
324.00
Solve for Payment. Tap on
„
. „
-7,710.78
Based on your calculation, Chris is going to be busy spending $7,710.78 per month
for the next 27 years!