44 — Q
UALIFIER
P
LUS
®
III
FX
Retirement Savings Account Problem (Future Value of an Initial
Deposit or Lump Sum)
If you invest $50,000 today into an IRA with an 8% yield (compound-
ed monthly), what is the future value in 25 years? What will it be
worth in 30 years?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Recall payments/year*
® ÷
12.00
Enter deposit into Loan Amt
(present value)
5 0 ) l
50,000.00
Enter Interest rate
8 ˆ
8.00
Enter Term in years
2 5 T
25.00
Find future value
s l
“run” 367,008.80
Enter new Term in years
3 0 T
30.00
Find new future value
s l
“run” 546,786.48
*Calculator must be set to default of 12 periods per year, for compounding monthly. If
it isn’t, enter
1 2 s ÷
. If you need to set the calculator to compounded interest
other
than monthly, enter the number of periods, then
s ÷
(e.g., for interest com-
pounded quarterly, enter
4 s ÷
).
Retirement Savings (Future Value of Monthly Investment —
Using Beginning Mode
)
If you invest $500 per month at the beginning of each month in a
retirement plan that earns annual interest of 7% compounded
monthly, what is the future value in 20 years? 30 years?
Note: the calculator defaults to End of the Month Mode, so you must change it to
Beginning Mode.
STEPS
KEYSTROKES
DISPLAY
Access End Mode via Preference
Settings
s =
(press
=
seven times)
TYP END
Set to Beginning Mode
+
TYP BEG
Clear calculator
o o
BEG 0.00
Recall payments/year*
® ÷
12.00
Enter monthly deposit
5 0 0 p
500.00
Enter annual Interest rate
7 ˆ
7.00
Enter Term in years
2 0 T
20.00
Find value in 20 years
s l
-261,982.70**
(Cont’d)
